search query: @indexterm market research / total: 2057
reference: 88 / 2057
| Author: | Blum, J. M. |
| Title: | Subordinated debt, market discipline, and banks' risk taking |
| Journal: | Journal of Banking and Finance
2002 : JUL, VOL. 26:7, p. 1427-1441 |
| Index terms: | Banks Debt management Risk management Market research |
| Language: | eng |
| Abstract: | The paper demonstrates the ambigious impact of subordinated debt on the risktaking incentives of banks. It is shown that in comparison with full deposit insurance, subordinated debt reduces risk only if banks can credibly commit to a given level of risk. If, however, banks are not able to commit, subordinated debt leads to an increase in risk. |
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