Athens: World Scientific and Engineering Academy and Society (W S E A S)
This paper examines a bank rescue plan for future lending. We demonstrate that an increase in the loans guaranteed by the government or in bank responsible for the first stake of any losses results in an increased interest margin. Eventually, the plan will be lifted when bank becomes healthy. The bank will keep its promise to increase its future lending at a reduced margin.
WSEAS Transactions on Information Science and Applications 6(6), pp.956-965