@article{ART001585661},
author={서은숙},
title={Capital Inflows and Bank Runs},
journal={Journal of Insurance and Finance},
issn={2384-3209},
year={2011},
volume={22},
number={3},
pages={95-125}
TY - JOUR
AU - 서은숙
TI - Capital Inflows and Bank Runs
JO - Journal of Insurance and Finance
PY - 2011
VL - 22
IS - 3
PB - Korea Insurance Research Institute
SP - 95
EP - 125
SN - 2384-3209
AB - This paper focuses on the design of banking arrangements in an open economy, where banks, but not private agents, have access to short-term foreign debt. This study shows that when the possibility of bank runs are not considered, the bank's portfolio at the beginning of a period is more illiquid than in the baseline closed economy case.
Then I ask a mechanism design question: What is the optimal contract in the presence of the possibility of a sunspot-triggered bank runs? I show that when international financial markets are in equilibrium, it is always optimal for the bank to choose a run-preventing contract. To do so, the bank must hold excess liquid assets, the source of which is foreign borrowing.
KW - bank runs;excess liquid assets;foreign borrowing;optimal banking deposit contract
DO -
UR -
ER -
서은숙. (2011). Capital Inflows and Bank Runs. Journal of Insurance and Finance, 22(3), 95-125.
서은숙. 2011, "Capital Inflows and Bank Runs", Journal of Insurance and Finance, vol.22, no.3 pp.95-125.
서은숙 "Capital Inflows and Bank Runs" Journal of Insurance and Finance 22.3 pp.95-125 (2011) : 95.
서은숙. Capital Inflows and Bank Runs. 2011; 22(3), 95-125.
서은숙. "Capital Inflows and Bank Runs" Journal of Insurance and Finance 22, no.3 (2011) : 95-125.
서은숙. Capital Inflows and Bank Runs. Journal of Insurance and Finance, 22(3), 95-125.
서은숙. Capital Inflows and Bank Runs. Journal of Insurance and Finance. 2011; 22(3) 95-125.
서은숙. Capital Inflows and Bank Runs. 2011; 22(3), 95-125.
서은숙. "Capital Inflows and Bank Runs" Journal of Insurance and Finance 22, no.3 (2011) : 95-125.
