Systemic risk and the optimal seniority structure of banking liabilities

The paper argues that systemic risk must be taken into account when designing optimal bankruptcy procedures in general, and priority rules in particular. Allowing for endogenous formation of links in the interbank market we show that the optimal policy depends on the distribution of shocks and the s...

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Main Authors: Bougheas, Spiros, Kirman, Alan
Format: Article
Published: Wiley 2018
Subjects:
Online Access:https://eprints.nottingham.ac.uk/48726/
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author Bougheas, Spiros
Kirman, Alan
author_facet Bougheas, Spiros
Kirman, Alan
author_sort Bougheas, Spiros
building Nottingham Research Data Repository
collection Online Access
description The paper argues that systemic risk must be taken into account when designing optimal bankruptcy procedures in general, and priority rules in particular. Allowing for endogenous formation of links in the interbank market we show that the optimal policy depends on the distribution of shocks and the severity of fire sales.
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format Article
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institution University of Nottingham Malaysia Campus
institution_category Local University
last_indexed 2025-11-14T20:10:10Z
publishDate 2018
publisher Wiley
recordtype eprints
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spelling nottingham-487262020-05-04T19:27:24Z https://eprints.nottingham.ac.uk/48726/ Systemic risk and the optimal seniority structure of banking liabilities Bougheas, Spiros Kirman, Alan The paper argues that systemic risk must be taken into account when designing optimal bankruptcy procedures in general, and priority rules in particular. Allowing for endogenous formation of links in the interbank market we show that the optimal policy depends on the distribution of shocks and the severity of fire sales. Wiley 2018-01-18 Article PeerReviewed Bougheas, Spiros and Kirman, Alan (2018) Systemic risk and the optimal seniority structure of banking liabilities. International Journal of Finance and Economics, 23 (1). pp. 47-54. ISSN 1099-1158 Banks; Priority rules; Systemic Risk http://onlinelibrary.wiley.com/doi/10.1002/ijfe.1602/abstract doi:10.1002/ijfe.1602 doi:10.1002/ijfe.1602
spellingShingle Banks; Priority rules; Systemic Risk
Bougheas, Spiros
Kirman, Alan
Systemic risk and the optimal seniority structure of banking liabilities
title Systemic risk and the optimal seniority structure of banking liabilities
title_full Systemic risk and the optimal seniority structure of banking liabilities
title_fullStr Systemic risk and the optimal seniority structure of banking liabilities
title_full_unstemmed Systemic risk and the optimal seniority structure of banking liabilities
title_short Systemic risk and the optimal seniority structure of banking liabilities
title_sort systemic risk and the optimal seniority structure of banking liabilities
topic Banks; Priority rules; Systemic Risk
url https://eprints.nottingham.ac.uk/48726/
https://eprints.nottingham.ac.uk/48726/
https://eprints.nottingham.ac.uk/48726/