Bankruptcy Priority for Bank Deposits: A Contract Theoretic Explanation
Author
Abstract
Suggested Citation
Download full text from publisher
To our knowledge, this item is not available for download. To find whether it is available, there are three options:1. Check below whether another version of this item is available online.
2. Check on the provider's web page whether it is in fact available.
3. Perform a search for a similarly titled item that would be available.
Other versions of this item:
- Urs W. Birchler, 1999. "Bankruptcy Priority for Bank Deposits: a Contract Theoretic Explanation," Working Papers 00.01, Swiss National Bank, Study Center Gerzensee.
References listed on IDEAS
- Winton, Andrew, 1995. "Costly State Verification and Multiple Investors: The Role of Seniority," The Review of Financial Studies, Society for Financial Studies, vol. 8(1), pages 91-123.
- Barclay, Michael J & Smith, Clifford W, Jr, 1995. "The Priority Structure of Corporate Liabilities," Journal of Finance, American Finance Association, vol. 50(3), pages 899-917, July.
- Repullo, Rafael & Suarez, Javier, 1998.
"Monitoring, Liquidation, and Security Design,"
The Review of Financial Studies, Society for Financial Studies, vol. 11(1), pages 163-187.
- Repullo,R. & Suarez,J., 1995. "Monitoring,Liquidation,and Security Design," Papers 9520, Centro de Estudios Monetarios Y Financieros-.
- Repullo, R. & Suarez, J., 1996. "Monitoring, Liquidation, and Security Design," Papers 273, Banca Italia - Servizio di Studi.
- Rafael Repullo & Javier Suárez, 1995. "Monitoring, Liquidation, and Security Design," Working Papers wp1995_9520, CEMFI.
- Ivo Welch, 1995. "Why is Bankdebt Senior? A Theory of Priority Among Creditors," Finance 18-94, University of California at Los Angeles.
- Calomiris, Charles W., 1999. "Building an incentive-compatible safety net," Journal of Banking & Finance, Elsevier, vol. 23(10), pages 1499-1519, October.
- Sussman, Oren, 1999. "Economic growth with standardized contracts," European Economic Review, Elsevier, vol. 43(9), pages 1797-1818, October.
- Mathias Dewatripont & Jean Tirole, 1994. "The prudential regulation of banks," ULB Institutional Repository 2013/9539, ULB -- Universite Libre de Bruxelles.
- William P. Osterberg, 1996. "The impact of depositor preference laws," Economic Review, Federal Reserve Bank of Cleveland, issue Q III, pages 2-11.
- Douglas D. Evanoff, 1992. "Preferred sources of market discipline: depositors vs. subordinated debt holders," Working Paper Series, Issues in Financial Regulation 92-21, Federal Reserve Bank of Chicago.
- Calomiris, Charles W & Kahn, Charles M, 1991. "The Role of Demandable Debt in Structuring Optimal Banking Arrangements," American Economic Review, American Economic Association, vol. 81(3), pages 497-513, June.
- Fama, Eugene F., 1985. "What's different about banks?," Journal of Monetary Economics, Elsevier, vol. 15(1), pages 29-39, January.
- Hart, Oliver & Moore, John, 1995.
"Debt and Seniority: An Analysis of the Role of Hard Claims in Constraining Management,"
American Economic Review, American Economic Association, vol. 85(3), pages 567-585, June.
- Oliver Hart & John Moore, 1994. "Debt and Seniority: An Analysis of the Role of Hard Claims in Constraining Management," NBER Working Papers 4886, National Bureau of Economic Research, Inc.
- Diamond, Douglas W., 1993. "Seniority and maturity of debt contracts," Journal of Financial Economics, Elsevier, vol. 33(3), pages 341-368, June.
- Kennickell, Arthur B & Kwast, Myron L & Starr-McCluer, Martha, 1996.
"Households' Deposit Insurance Coverage: Evidence and Analysis of Potential Reforms,"
Journal of Money, Credit and Banking, Blackwell Publishing, vol. 28(3), pages 311-322, August.
- Arthur B. Kennickell & Myron L. Kwast & Martha Starr-McCluer, 1995. "Households' deposit insurance coverage: evidence and analysis of potential reforms," Finance and Economics Discussion Series 95-5, Board of Governors of the Federal Reserve System (U.S.).
- Gorton, G. & Khan, J., 1992.
"The Design of Bank Loan Contracts, Collateral, and Renegociation,"
RCER Working Papers
327, University of Rochester - Center for Economic Research (RCER).
- Gary Gorton & James A. Kahn, 1993. "The Design of Bank Loan Contracts, Collateral, and Renegotiation," NBER Working Papers 4273, National Bureau of Economic Research, Inc.
- Scott, James H, Jr, 1977. "Bankruptcy, Secured Debt, and Optimal Capital Structure," Journal of Finance, American Finance Association, vol. 32(1), pages 1-19, March.
- Stulz, ReneM. & Johnson, Herb, 1985. "An analysis of secured debt," Journal of Financial Economics, Elsevier, vol. 14(4), pages 501-521, December.
Citations
Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
Cited by:
- Kevin Davis, 2020. "Regulatory changes to bank liability structures: implications for deposit insurance design," Journal of Banking Regulation, Palgrave Macmillan, vol. 21(1), pages 95-106, March.
- Urs W. Birchler & Diana Hancock, 2003.
"What does the yield on subordinated bank debt measure?,"
Finance and Economics Discussion Series
2004-19, Board of Governors of the Federal Reserve System (U.S.).
- Diana Hancock & Urs W. Birchler, 2004. "What Does the Yield on Subordinated Bank Debt Measure?," Working Papers 2004-02, Swiss National Bank.
- Urs W. Birchler, 2000. "Are banks excessively monitored?," Working Papers 00.14, Swiss National Bank, Study Center Gerzensee.
- Pagès, H. & Santos, J., 2002.
"Optimal Supervisory Policies and Depositor-Preferences Laws,"
Working papers
91, Banque de France.
- Henri Pagès & João A. C. Santos, 2003. "Optimal supervisory policies and depositor-preference laws," BIS Working Papers 131, Bank for International Settlements.
- Kahn, Charles M. & Santos, Joao A.C., 2005.
"Allocating bank regulatory powers: Lender of last resort, deposit insurance and supervision,"
European Economic Review, Elsevier, vol. 49(8), pages 2107-2136, November.
- Charles M. Kahn & João A. C. Santos, 2001. "Allocating bank regulatory powers: lender of last resort, deposit insurance and supervision," BIS Working Papers 102, Bank for International Settlements.
- Charles M. Kahn & João A. C. Santos, 2001. "Allocating bank regulatory powers: lender of last resort, deposit insurance, and supervision," Proceedings 717, Federal Reserve Bank of Chicago.
- Francis, Bill & Hasan, Iftekhar & Liu, LiuLing & Wang, Haizhi, 2019. "Senior debt and market discipline: Evidence from bank-to-bank loans," Journal of Banking & Finance, Elsevier, vol. 98(C), pages 170-182.
- Spiros Bougheas & Alan Kirman, 2016.
"Bank Insolvencies, Priority Claims and Systemic Risk,"
Lecture Notes in Economics and Mathematical Systems, in: Pasquale Commendatore & Mariano Matilla-García & Luis M. Varela & Jose S. Cánovas (ed.), Complex Networks and Dynamics, pages 195-208,
Springer.
- Spiros Bougheas & Alan Kirman, 2015. "Bank Insolvencies, Priority Claims and Systemic Risk," Discussion Papers 2015/08, University of Nottingham, Centre for Finance, Credit and Macroeconomics (CFCM).
- Spiros Bougheas & Alan Kirman, 2016. "Bank Insolvencies, Priority Claims and Systemic Risk," Post-Print hal-03589797, HAL.
- Spiros Bougheas & Alan Kirman, 2018.
"Systemic risk and the optimal seniority structure of banking liabilities,"
International Journal of Finance & Economics, John Wiley & Sons, Ltd., vol. 23(1), pages 47-54, January.
- Sprios Bougheas & Alan Kirman, 2015. "Systemic Risk and the Optimal Seniority Structure of Banking Liabilities," Discussion Papers 2015/15, University of Nottingham, Centre for Finance, Credit and Macroeconomics (CFCM).
- Spiros Bougheas & Alan Kirman, 2016. "Systemic risk and the optimal seniority structure of banking liabilities," Gecomplexity Discussion Paper Series 201602, Action IS1104 "The EU in the new complex geography of economic systems: models, tools and policy evaluation", revised Jan 2016.
- Garcia-Appendini, Emilia & Gatti, Stefano & Nocera, Giacomo, 2023.
"Does asset encumbrance affect bank risk? Evidence from covered bonds,"
Journal of Banking & Finance, Elsevier, vol. 146(C).
- Emilia Garcia-Appendini & Stefano Gatti & Giacomo Nocera, 2022. "Does Asset Encumbrance Affect Bank Risk? Evidence from Covered Bonds," Post-Print hal-04057165, HAL.
- Marvin Goodfriend & Jeffrey M. Lacker, 1999.
"Limited commitment and central bank lending,"
Economic Quarterly, Federal Reserve Bank of Richmond, issue Fall, pages 1-27.
- Marvin Goodfriend & Jeffrey M. Lacker, 1999. "Limited commitment and central bank lending," Working Paper 99-02, Federal Reserve Bank of Richmond.
- Piotr Danisewicz & Danny McGowan & Enrico Onali & Klaus Schaeck, 2018. "Debt Priority Structure, Market Discipline, and Bank Conduct," The Review of Financial Studies, Society for Financial Studies, vol. 31(11), pages 4493-4555.
Most related items
These are the items that most often cite the same works as this one and are cited by the same works as this one.- Urs W. Birchler & Diana Hancock, 2003.
"What does the yield on subordinated bank debt measure?,"
Finance and Economics Discussion Series
2004-19, Board of Governors of the Federal Reserve System (U.S.).
- Diana Hancock & Urs W. Birchler, 2004. "What Does the Yield on Subordinated Bank Debt Measure?," Working Papers 2004-02, Swiss National Bank.
- Jason Donaldson & Denis Gromb & Giorgia Piacentino, 2019. "Conflicting Priorities: A Theory of Covenants and Collateral," 2019 Meeting Papers 157, Society for Economic Dynamics.
- John Armour, 2006. "Should we redistribute in insolvency," Working Papers wp319, Centre for Business Research, University of Cambridge.
- Kobayashi, Mami & Osano, Hiroshi, 2012. "Nonrecourse financing and securitization," Journal of Financial Intermediation, Elsevier, vol. 21(4), pages 659-693.
- 0. De Bandt & B. Camara & P. Pessarossi & M. Rose, 2014. "Does the capital structure affect banks’ profitability? Pre- and post financial crisis evidence from significant banks in France," Débats économiques et financiers 12, Banque de France.
- Garcia-Appendini, Emilia & Gatti, Stefano & Nocera, Giacomo, 2023.
"Does asset encumbrance affect bank risk? Evidence from covered bonds,"
Journal of Banking & Finance, Elsevier, vol. 146(C).
- Emilia Garcia-Appendini & Stefano Gatti & Giacomo Nocera, 2022. "Does Asset Encumbrance Affect Bank Risk? Evidence from Covered Bonds," Post-Print hal-04057165, HAL.
- Armanious, Amir & Zhao, Ruoyun, 2024. "Stock liquidity effect on leverage: The role of debt security, financial constraint, and risk around the global financial crisis and Covid-19 pandemic," International Review of Financial Analysis, Elsevier, vol. 92(C).
- Arup Daripa & Simone Varotto, 2010.
"Ex-Ante Versus Ex-Post Regulation Of Bank Capital,"
World Scientific Book Chapters, in: Lloyd P Blenman & Harold A Black & Edward J Kane (ed.), Banking And Capital Markets New International Perspectives, chapter 2, pages 29-58,
World Scientific Publishing Co. Pte. Ltd..
- Dr Arup Daripa & Dr. Simone Varotto, 2004. "Ex Ante versus Ex Post Regulation of Bank Capital," ICMA Centre Discussion Papers in Finance icma-dp2004-12, Henley Business School, University of Reading.
- Arup Daripa & Simone Varotto, 2005. "Ex Ante Versus Ex Post Regulation of Bank Capital," Finance 0511009, University Library of Munich, Germany.
- Arup Daripa & Simone Varotto, 2005. "Ex Ante Versus Ex Post Regulation of Bank Capital," Birkbeck Working Papers in Economics and Finance 0518, Birkbeck, Department of Economics, Mathematics & Statistics.
- Chodorow-Reich, Gabriel & Darmouni, Olivier & Luck, Stephan & Plosser, Matthew, 2022.
"Bank liquidity provision across the firm size distribution,"
Journal of Financial Economics, Elsevier, vol. 144(3), pages 908-932.
- Gabriel Chodorow-Reich & Olivier M. Darmouni & Stephan Luck & Matthew Plosser, 2020. "Bank Liquidity Provision across the Firm Size Distribution," Staff Reports 942, Federal Reserve Bank of New York.
- Gabriel Chodorow-Reich & Olivier Darmouni & Stephan Luck & Matthew C. Plosser, 2020. "Bank Liquidity Provision Across the Firm Size Distribution," NBER Working Papers 27945, National Bureau of Economic Research, Inc.
- Acharya, Viral V. & Thakor, Anjan V., 2016. "The dark side of liquidity creation: Leverage and systemic risk," Journal of Financial Intermediation, Elsevier, vol. 28(C), pages 4-21.
- Adrian Van Rixtel & Luna Romo González & Jing Yang, 2015.
"The determinants of long-term debt issuance by European banks: evidence of two crises,"
BIS Working Papers
513, Bank for International Settlements.
- Adrian van Rixtel & Luna Romo González & Jing Yang, 2016. "The determinants of long-term debt issuance by European banks: evidence of two crises," Working Papers 1621, Banco de España.
- Mahrt-Smith, Jan, 2006. "Should banks own equity stakes in their borrowers? A contractual solution to hold-up problems," Journal of Banking & Finance, Elsevier, vol. 30(10), pages 2911-2929, October.
- Sommer, Christoph, 2021. "The impact of patient capital on job quality, investments and firm performance: Cross-country evidence on long-term finance," IDOS Discussion Papers 6/2021, German Institute of Development and Sustainability (IDOS).
- Longhofer, Stanley D. & Santos, Joao A. C., 2000.
"The Importance of Bank Seniority for Relationship Lending,"
Journal of Financial Intermediation, Elsevier, vol. 9(1), pages 57-89, January.
- Stanley D. Longhofer & João A. C. Santos, 1998. "The importance of bank seniority for relationship lending," Working Papers (Old Series) 9808, Federal Reserve Bank of Cleveland.
- João A. C. Santos & Stanley D. Longhofer, 1998. "The importance of bank seniority for relationship lending," BIS Working Papers 58, Bank for International Settlements.
- Stanley D. Longhofer & João A. C. Santos, 1999. "The importance of bank seniority for relationship lending," Proceedings 620, Federal Reserve Bank of Chicago.
- Pierluigi Bologna, 2015. "Structural Funding and Bank Failures," Journal of Financial Services Research, Springer;Western Finance Association, vol. 47(1), pages 81-113, February.
- Andrew Winton, 1996. "Monitored finance, liquidity, and institutional investment choice," Working Papers (Old Series) 9616, Federal Reserve Bank of Cleveland.
- Donaldson, Jason Roderick & Gromb, Denis & Piacentino, Giorgia, 2020.
"The paradox of pledgeability,"
Journal of Financial Economics, Elsevier, vol. 137(3), pages 591-605.
- Donaldson, Jason & Gromb, Denis & Piacentino, Giorgia, 2017. "The Paradox of Pledgeability," HEC Research Papers Series 1185, HEC Paris.
- Jason Roderick Donaldson & Denis Gromb & Giorgia Piacentino, 2017. "The Paradox of Pledgeability," Working Papers hal-01970749, HAL.
- Rong Fan & Joseph Haubrich & Peter Ritchken & James Thomson, 2003.
"Getting the Most Out of a Mandatory Subordinated Debt Requirement,"
Journal of Financial Services Research, Springer;Western Finance Association, vol. 24(2), pages 149-179, October.
- Rong Fan & Joseph G. Haubrich & Peter H. Ritchken & James B. Thomson, 2002. "Getting the most out of a mandatory subordinated debt requirement," Working Papers (Old Series) 0214, Federal Reserve Bank of Cleveland.
- Rong Fan & Joseph G. Haubrich & Peter H. Ritchken & James B. Thomson, 2003. "Getting the most out of mandatory subordinated debt requirement," Proceedings 848, Federal Reserve Bank of Chicago.
- Biguri, Kizkitza, 2023. "How Does Access to the Unsecured Debt Market Affect Investment?," Journal of Banking & Finance, Elsevier, vol. 152(C).
- Pagès, H. & Santos, J., 2002.
"Optimal Supervisory Policies and Depositor-Preferences Laws,"
Working papers
91, Banque de France.
- Henri Pagès & João A. C. Santos, 2003. "Optimal supervisory policies and depositor-preference laws," BIS Working Papers 131, Bank for International Settlements.
Corrections
All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:oup:rfinst:v:13:y:2000:i:3:p:813-40. See general information about how to correct material in RePEc.
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Oxford University Press (email available below). General contact details of provider: https://edirc.repec.org/data/sfsssea.html .
Please note that corrections may take a couple of weeks to filter through the various RePEc services.