In principle, market and government supervision provide alternative devices for controlling
(governing) any type of corporation. Most national governments have instituted nonmarket …

In recent years there has been a growing realization that there are significant problems with
the current bank risk-based capital guidelines. As financial firms have become more …

This paper empirically investigates two issues largely unexplored by the literature on market
discipline. We evaluate the interaction between market discipline and deposit insurance and …

We examine debenture yields over the period 1983–1991 to evaluate the market's sensitivity
to bank‐specific risks, and conclude that investors have rationally reflected changes in the …

Explicit deposit insurance has been spreading rapidly in recent years, even to countries with
low levels of financial and institutional development. This paper documents the extent of …

This study provides evidence that banks are effective monitors of their peers by showing that
the interest rate paid on federal funds transactions reflects differences in credit risk across …

This paper decomposes default risk into timing and recovery risks. The two default
components are explicitly priced as if they were traded in the futures market. We develop …

This paper tests for the presence of depositor discipline by examining the effects of
depository institutions' risk on the pricing and growth of uninsured deposits. The study …

In the debt area there have been constant contributions. Recent papers include Cramer and
Rogowski (1985) and Goldberg and Lloyd-Davies (1985) who offer contradictory …

Uninsured bank liabilities should offer a promised yield that compensates depositors for
their expected default losses. However, the conjectural, guarantees available to large US …