Pulapy oprocentowania depozytow jakoinstrument regulacji ostroznosciowych

• Authors: Krajewski Janusz

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.

Keywords

EN

BANKING CRISES; CAPITAL; FINANCIAL LIBERALIZATION

Discipline

• ECONOMICS: ECONOMICS

• Publisher: Wyższa Szkoła Finansów i Zarządzania w Warszawie
• Journal: Contemporary Economics
• Year: 2007
• Issue: 4(4)
• Pages: 45-63
• Document type: ARTICLE

Contributors

author

Krajewski Janusz

• Janusz Krajewski, Wydzial Nauk Ekonomicznych, Uniwersytet Warszawski, ul. Dluga 44/50, 00-241 Warszawa, Poland

Identifiers

CEJSH db identifier

11PLAAAA092331