MARC Record from Library of Congress

LEADER: 02447cam a22003377a 4500
001 2004620280
003 DLC
005 20041029085959.0
007 cr |||||||||||
008 041029s2004 dcu sb i000 0 eng
010 $a 2004620280
040 $aDLC$cDLC
050 00 $aHG3881.5.W57
100 1 $aLevy Yeyati, Eduardo.
245 10 $aMarket discipline under systemic risk$h[electronic resource] :$bevidence from bank runs in emerging economies /$cEduardo Levy Yeyati, Maria Soledad Martinez Peria, and Sergio Schmukler.
260 $a[Washington, D.C. :$bWorld Bank,$c2004]
490 1 $aPolicy research working paper ;$v3440
538 $aSystem requirements: Adobe Acrobat Reader.
538 $aMode of access: World Wide Web.
500 $aTitle from PDF file as viewed on 10/29/2004.
530 $aAlso available in print.
504 $aIncludes bibliographical references.
520 3 $a"Levy-Yeyati, Martinez Peria, and Schmukler show that systemic risk exerts a significant impact on the behavior of depositors, sometimes overshadowing their responses to standard bank fundamentals. Systemic risk can affect market discipline both regardless of and through bank fundamentals. First, worsening systemic conditions can directly threaten the value of deposits by way of dual agency problems. Second, to the extent that banks are exposed to systemic risk, systemic shocks lead to a future deterioration of fundamentals not captured by their current values. Using data from the recent banking crises in Argentina and Uruguay, the authors show that market discipline is indeed quite robust once systemic risk is factored in. As systemic risk increases, the informational content of past fundamentals declines. These episodes also show how few systemic shocks can trigger a run irrespective of ex-ante fundamentals. Overall, the evidence suggests that in emerging economies, the notion of market discipline needs to account for systemic risk. This paper--a product of the Finance Team, Development Research Group--is part of a larger effort in the group to study market discipline"--World Bank web site.
650 0 $aCapital market.
650 0 $aBank failures.
650 0 $aRisk management.
700 1 $aMartinez Peria, Maria Soledad.
700 1 $aSchmukler, Sergio L.
710 2 $aWorld Bank.
830 0 $aPolicy research working papers (Online) ;$v3440.
856 40 $uhttp://econ.worldbank.org/view.php?type=5&id=39805