| 来源类型 | Working Paper
|
| 规范类型 | 报告
|
| DOI | 10.3386/w4701
|
| 来源ID | Working Paper 4701
|
| How Much Did Capital Forbearance Add to the Cost of the S&L Insurance Mess |
| Edward J. Kane; Min-Teh Yu
|
| 发表日期 | 1994-04-01
|
| 出版年 | 1994
|
| 语种 | 英语
|
| 摘要 | Federal regulators characterize capital forbearance as an efficient way of nursing weak banks and thrifts back to health. An alternative hypothesis is that forbearance reflects inefficient costs of agency that fall on federal deposit-insurance funds. Divergences between regulatory measures of a troubled institution's net worth and GAAP and market-value measures relieved FSLIC from having to book de facto encumbrances that industry losses were imposing on the FSLIC fund. This omission protected the reputations and careers of top officials. Delays in insolvency resolution intensified FSLIC exposure to future losses by distorting management and risk-taking incentives and squeezing profit margins for surviving thrifts. Besides accumulating projects with negative net present value, delay hurt FSLIC indirectly by undermining the average profitability of the industry it insured. This paper seeks to measure the opportunity cost of FSLIC forbearance during 1985-1989. Although the opportunity cost of delay did not increase every year, it did increase on average. Had opportunity-cost standards of capital adequacy been routinely enforced, FSLIC guarantees would not have displaced private capital on a mammoth scale, surviving members of the industry would have proven more profitable, and investments in commercial real estate would have been restrained. |
| 主题 | Financial Economics
; Financial Institutions
; Other
; Law and Economics
|
| URL | https://www.nber.org/papers/w4701
|
| 来源智库 | National Bureau of Economic Research (United States)
|
| 引用统计 |
|
| 资源类型 | 智库出版物
|
| 条目标识符 | http://119.78.100.153/handle/2XGU8XDN/562095
|
推荐引用方式
GB/T 7714 |
Edward J. Kane,Min-Teh Yu. How Much Did Capital Forbearance Add to the Cost of the S&L Insurance Mess. 1994.
|
|
文件名：
|
w4701.pdf
|
|
格式：
|
Adobe PDF
|
此文件暂不支持浏览
除非特别说明，本系统中所有内容都受版权保护，并保留所有权利。
