Detail Bank regulation: Dilute or die   Oleh:  The Economist Jenis: Article from Bulletin/Magazine Dalam koleksi: The Economist (http://search.proquest.com/) vol. 391 no. 8631 (May 2009), page 79. Topik: Banking Industry; Market Signals; Credit Default Swaps (CDS); Debts Ketersediaan Perpustakaan Pusat (Semanggi) Nomor Panggil: EE29.55 Non-tandon: 1 (dapat dipinjam: 0) Tandon: tidak ada     Lihat Detail Induk Isi artikel AS THE tab for bank bail-outs rises, the notion that a firm can be “too big to fail” has become almost too much to stomach. What is needed is a regulatory regime that disciplines banks without forcing them to the wall in such a way that their demise wrecks the payments system. One way is to make banks hold so much equity, and so little debt, that even huge losses would not lead to insolvency. Debt has its advantages, however. For instance, it can be cheaper than equity finance, thanks to tax breaks. In new research, Oliver Hart, of Harvard University, and Luigi Zingales, of the University of Chicago, argue that the mix of debt and equity should fluctuate according to the risk of bank failure. Banks should hold less capital in good times and reduce leverage when losses loom. This could be achieved in the absence of an all-wise regulator by using the cost of credit-default swaps (CDSs), which insure against default, as a guide to the right capital structure. Opini Anda Klik untuk menuliskan opini Anda tentang koleksi ini! Kembali

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