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Banking regulation and financial stability

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Listed:
  • Bakirov Rustam
  • Grishan Maxim

Abstract

Panic and a massive withdrawal of deposits triggered by an expectation of bankruptcy may force the bank to sell off valuable assets, causing sizeable losses and, in some cases, closure of an initially healthy financial institution. The traditional way of preventing bank runs has to do with the imposition of various restrictions on the bank’s activity. Yet, restrictions and regulations can vary. Based on a theoretical model, the authors analyze the effect of alternative banking regulation instruments on the stability of the Russian financial system.

Suggested Citation

  • Bakirov Rustam & Grishan Maxim, 2003. "Banking regulation and financial stability," EERC Working Paper Series 99-088e, EERC Research Network, Russia and CIS.
    • Handle: RePEc:eer:wpalle:99-088e
    as

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    References listed on IDEAS

    as
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    More about this item

    JEL classification:

    • E00 - Macroeconomics and Monetary Economics - - General - - - General
    • G00 - Financial Economics - - General - - - General

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