No . 982 Ng the Efficiency of Capital Allocation in Commercial Banking

@inproceedings{Hughes1997No9,
  title={No . 982 Ng the Efficiency of Capital Allocation in Commercial Banking},
  author={Joseph P. Hughes},
  year={1997}
}
Commercial banks leverage their equity capital with demandable debt that participates in the economy’s payments system. The distinctive nature of this debt generates an unusual degree of liquidity risk that can, at times, threaten the payments system. To reduce this threat, insurance protects deposits; and to reduce the moral hazard problems of the debt… CONTINUE READING