The effect of solvency regulation to a bank

Akira Momota, Yasuo Maeda

研究成果: Article

抄録

In this paper, we investigate how the solvency regulation of a bank affects resource allocation and welfare. We show that a banker's expected profit always decreases due to the solvency regulation, and more importantly, each depositor's expected utility is not necessarily improved by the solvency regulation in general. We also investigate how allocative efficiency measured by Kaldor criteria changes due to the solvency regulation, and show that the regulation increases the efficiency measured by this criteria if and only if the total amount of investment in a project increases in the economy.

元の言語English
ページ(範囲)163-191
ページ数29
ジャーナルJapan and the World Economy
16
発行部数2
DOI
出版物ステータスPublished - 2004 4

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solvency
bank
regulation
efficiency
profit
welfare
Solvency
economy
resources

ASJC Scopus subject areas

  • Economics and Econometrics
  • Finance

これを引用

The effect of solvency regulation to a bank. / Momota, Akira; Maeda, Yasuo.

:: Japan and the World Economy, 巻 16, 番号 2, 04.2004, p. 163-191.

研究成果: Article

Momota, Akira ; Maeda, Yasuo. / The effect of solvency regulation to a bank. :: Japan and the World Economy. 2004 ; 巻 16, 番号 2. pp. 163-191.
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