The Economics of Bank Regulation

@article{Bhattacharya1995TheEO,
  title={The Economics of Bank Regulation},
  author={Sudipto Bhattacharya and Arnoud Boot and Anjan V. Thakor},
  journal={Journal of Money, Credit and Banking},
  year={1995},
  volume={30},
  pages={745-770}
}
The authors review the economics of bank regulation as developed in the contemporary literature. They begin with an examination of the central aspects of modern banking theories in explaining the asset transformation function of intermediaries, optimal bank liability contracts, coordination problems leading to bank failures and their empirical significance, and the regulatory interventions suggested by these considerations. In particular, the authors focus on regulations aimed primarily at… 
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