Scandinavian Working Papers in Economics
HomeAboutSeriesSubject/JEL codesAdvanced Search
Bank of Finland Research Discussion Papers, Bank of Finland

No 5/2003:
Economic evaluation of bank exit regimes in US, EU and Japanese financial centres

Peik Granlund ()

Abstract: This paper evaluates bank exit regimes in selected financial centres using econometric methods. The focus is on bank exit regimes applicable to commercial banks in New York, London, Frankfurt, Helsinki and Tokyo in 19982002. Bank exit regimes are studied from the perspective of bank creditors and bank shareholders. In order to apply econometric methods, the exit regimes are indexed and then evaluated by comparing them with market indicators that reflect the interests of bank creditors and shareholders. These market indicators comprise bank refinancing costs and bank growth rates. In other words, two specific questions are addressed: (1) Do differences in bank exit regimes of significance to bank creditors explain differences in bank refinancing costs? (2) Do differences in bank exit regimes significant to bank shareholders explain differences in bank growth? The study shows that in those financial centres where the probability of bailout is higher, refinancing costs for banks are lower.

Keywords: evaluation; bank; regulation; supervision; reorganisation; liquidation; (follow links to similar papers)

JEL-Codes: G15; G18; G21; (follow links to similar papers)

63 pages, February 28, 2003

Before downloading any of the electronic versions below you should read our statement on copyright.
Download GhostScript for viewing Postscript files and the Acrobat Reader for viewing and printing pdf files.

Full text versions of the paper:

0305.pdf    PDF-file
Download Statistics

Questions (including download problems) about the papers in this series should be directed to Minna Nyman ()
Report other problems with accessing this service to Sune Karlsson () or Helena Lundin ().

Programing by
Design by Joachim Ekebom

Handle: RePEc:hhs:bofrdp:2003_005 This page was generated on 2014-12-14 19:21:29