How Long to Read Shadow Banking and Market Discipline on Traditional Banks

How Long Does it Take to Read Shadow Banking and Market Discipline on Traditional Banks?

It takes the average reader 1 hour and 5 minutes to read Shadow Banking and Market Discipline on Traditional Banks by Mr.Anil Ari

Assuming a reading speed of 250 words per minute. Learn more

Description

We present a model in which shadow banking arises endogenously and undermines market discipline on traditional banks. Depositors' ability to re-optimize in response to crises imposes market discipline on traditional banks: these banks optimally commit to a safe portfolio strategy to prevent early withdrawals. With costly commitment, shadow banking emerges as an alternative banking strategy that combines high risk-taking with early liquidation in times of crisis. We bring the model to bear on the 2008 financial crisis in the United States, during which shadow banks experienced a sudden dry-up of funding and liquidated their assets. We derive an equilibrium in which the shadow banking sector expands to a size where its liquidation causes a fire-sale and exposes traditional banks to liquidity risk. Higher deposit rates in compensation for liquidity risk also weaken threats of early withdrawal and traditional banks pursue risky portfolios that may leave them in default. Policy interventions aimed at making traditional banks safer such as liquidity support, bank regulation and deposit insurance fuel further expansion of shadow banking but have a net positive impact on financial stability. Financial stability can also be achieved with a tax on shadow bank profits.

How long is Shadow Banking and Market Discipline on Traditional Banks?

Shadow Banking and Market Discipline on Traditional Banks by Mr.Anil Ari is 64 pages long, and a total of 16,256 words.

This makes it 22% the length of the average book. It also has 20% more words than the average book.

How Long Does it Take to Read Shadow Banking and Market Discipline on Traditional Banks Aloud?

The average oral reading speed is 183 words per minute. This means it takes 1 hour and 28 minutes to read Shadow Banking and Market Discipline on Traditional Banks aloud.

What Reading Level is Shadow Banking and Market Discipline on Traditional Banks?

Shadow Banking and Market Discipline on Traditional Banks is suitable for students ages 8 and up.

Note that there may be other factors that effect this rating besides length that are not factored in on this page. This may include things like complex language or sensitive topics not suitable for students of certain ages.

When deciding what to show young students always use your best judgement and consult a professional.

Where Can I Buy Shadow Banking and Market Discipline on Traditional Banks?

Shadow Banking and Market Discipline on Traditional Banks by Mr.Anil Ari is sold by several retailers and bookshops. However, Read Time works with Amazon to provide an easier way to purchase books.

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