PL EN


2007 | 4(4) | 45-63
Article title

Pulapy oprocentowania depozytow jakoinstrument regulacji ostroznosciowych

Title variants
EN
DEPOSIT RATE CEILINGS AS A TOLL OF PRUDENTIAL REGULATION
Languages of publication
PL
Abstracts
EN
The purpose of the paper is to present one of prudential regulation instruments in an environment that favors to engage in moral hazard behavior. The last decades proved that there is a link between financial liberalization and banking crises. In order to avoid crises and prevent banks engaging in gambling behavior, the system of prudential regulations has been implemented. The emphasis has been placed on the use of capital requirements, typically using the BIS standard developed in the Basel Accord. As the excessive reliance on capital requirements can become costly for the banks and lead to lose their franchise value and undermine incentives for prudent investing. The instrument that can create the franchise value, i.e. earning profits in the current period and in the future, is a policy of deposit rate controls. In the paper was also revealed why the policy of setting interest rate ceiling on deposits had not achieved its intended objectives, especially in the view of the fail of the Regulation Q policy.
Year
Issue
Pages
45-63
Physical description
Document type
ARTICLE
Contributors
  • Janusz Krajewski, Wydzial Nauk Ekonomicznych, Uniwersytet Warszawski, ul. Dluga 44/50, 00-241 Warszawa, Poland
References
Document Type
Publication order reference
Identifiers
CEJSH db identifier
11PLAAAA092331
YADDA identifier
bwmeta1.element.75f8784d-a86e-3dc0-a5fb-59664b5d705c
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