Cycles And Banking Crisis
Lazopoulos, I (2005) Cycles And Banking Crisis Keele Working Papers in Economics.
Full text not available from this repository.Abstract
We extend Diamond and Dybvig's (1983)[11] model to a dynamic context where we study how the bank's financial stability is a®ected by successive withdrawal shocks during a crisis. We model a crisis as a series of these unanticipated events over a long period of time and not as isolated bank runs. We highlight the importance of banks' portfo- lio liquidity in surviving such crisis. The paper shows that external borrowing can smooth investment returns to guarantee that solvent but illiquid intermediaries can survive a crisis. In the presence of borrowing restrictions banks' liquidity exhibits an erratic behaviour.
Item Type: | Article | ||||||
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Divisions : | Surrey research (other units) | ||||||
Authors : |
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Date : | 1 February 2005 | ||||||
Uncontrolled Keywords : | Cycles, Banking crisis | ||||||
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Depositing User : | Symplectic Elements | ||||||
Date Deposited : | 16 May 2017 15:12 | ||||||
Last Modified : | 24 Jan 2020 14:07 | ||||||
URI: | http://epubs.surrey.ac.uk/id/eprint/818027 |
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