Banking

Working Paper

Caught between Scylla and Charybdis? Regulating Bank Leverage When There is Rent Seeking and Risk Shifting

We develop a theory of optimal bank leverage in which the benefit of debt in inducing
loan monitoring is balanced against the benefit of equity in attenuating risk-shifting.
However, faced with socially-costly correlated bank failures...Read more

Viral Acharya
Anjan Thakor
01 September 2015

Family Business Groups and Organizational Structure: A Study of Bank Pyramidal Ownership in Thailand

This paper investigates how banks and finance companies operate in a family business
group. Using uniquely detailed ownership data from Thailand, we find that the controlling
families extensively use pyramids to control banks and...Read more

Yupana Wiwattanakantang
01 July 2014

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