In a small open economy with a high share of short term foreign currency denominated debt the arrival of some negative information on banks' investment returns may lead to severe bank runs. We analyse how a supranational institution which acts as an international lender of last resort can cope with banking crises by guaranteeing run-proof bank deposit contracts.
Corrado, G. (2005). Liquidity shocks, banking system failures and supranational lending of last resort facilities. ANNALS OF ECONOMICS AND FINANCE, 6, 1-24.
Liquidity shocks, banking system failures and supranational lending of last resort facilities
CORRADO, GERMANA
2005-01-01
Abstract
In a small open economy with a high share of short term foreign currency denominated debt the arrival of some negative information on banks' investment returns may lead to severe bank runs. We analyse how a supranational institution which acts as an international lender of last resort can cope with banking crises by guaranteeing run-proof bank deposit contracts.File in questo prodotto:
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