淡江大學機構典藏:Item 987654321/99020
English  |  正體中文  |  简体中文  |  Items with full text/Total items : 62830/95882 (66%)
Visitors : 4038320      Online Users : 565
RC Version 7.0 © Powered By DSPACE, MIT. Enhanced by NTU Library & TKU Library IR team.
Scope Tips:
  • please add "double quotation mark" for query phrases to get precise results
  • please goto advance search for comprehansive author search
    •  Adv. Search
    Home ‧ Login ‧ Upload ‧ Help ‧ About ‧ Administer Goto mobile version


    Please use this identifier to cite or link to this item: https://tkuir.lib.tku.edu.tw/dspace/handle/987654321/99020


    Title: Government bailouts and default risks of a duopoly: strong bank versus weak bank
    Authors: Tsai, Jeng-Yan;Lin, Jyh-Horng;Cheng, Chu-Yun
    Contributors: 淡江大學國際企業學系
    Keywords: bank interest margin;default risk;distressed asset purchases;direct equity injections;duopoly;G21;G28
    Date: 2014-09-18
    Issue Date: 2014-10-09 10:26:48 (UTC+8)
    Publisher: Abingdon: Routledge
    Abstract: A duopolistic loan market includes a strong bank without the problem of early closure that opts out of government bailouts and a weak bank with this problem that participates in the bailout programmes of distressed loan purchases and direct equity injections. A direct implication of our framework is that the strong bank’s equity will be priced as a standard call option, while the weak bank’s equity will be priced as a down-and-out call option. We find that an increase in either bailout (i.e. distressed loan purchases and direct equity injections) directly decreases the weak bank’s default risk but indirectly increases the strong bank’s default risk. Accordingly, either bailout contributes to banking stability since the indirect positive effect insufficiently offsets the direct negative effect, giving an overall negative response of default risks to an increase in either bailout. Higher competition by shifting to quasi-competition from collusion increases banking stability under either bailout. Our analysis suggests that competition is aligned with the regulatory objective of improving stability.
    Relation: Applied Economics 46(34), pp.4137-4150
    DOI: 10.1080/00036846.2014.932048
    Appears in Collections:[Graduate Institute & Department of International Business] Journal Article

    Files in This Item:

    File Description SizeFormat
    Government bailouts and default risks of a duopoly strong bank versus weak bank.pdf382KbAdobe PDF1View/Open
    index.html0KbHTML308View/Open

    All items in 機構典藏 are protected by copyright, with all rights reserved.

    DSpace Software Copyright © 2002-2004  MIT &  Hewlett-Packard  /   Enhanced by   NTU Library & TKU Library IR teams. Copyright ©   - Feedback