Earticle

초록

영어

This paper proposes a model to analyze an incentive compatible regulation of capital adequacy requirement ratio and a risk-based deposit insurance premium for banks in a competitive financial market where information asymmetry resides. In this paper, there will be an examination of the effects of the change of allotment rules of the remaining assets of insolvent banks to depositors, creditors and shareholders on national tax revenue, stock value of banks, and an incentive compatible regulation. The results from our analysis are as follows: First, the incentive compatible combination of regulation was identified to be present in both PRS (the pro-rata sharing) and IDP (insured deposit preference) rules. The request demanding the gradually increasing capital adequacy requirement ratio of banks was revealed by following the order of highly probable successful loan portfolios from the baseline of mandatory minimum capital adequacy requirement ratio. Second, in the case of an institutional change from a PRS rule to an IDP rule where there exist an incentive compatible regulation, the average risk of a bank loan was found to be increasing along with the expansion of loans out to bad enterprises with high credit risk, such as small- and medium-sized corporations. Third, it was found that there could not be a consistent determination of the stock price of the overall banking business and the fluctuation of governmental tax revenue. However, through the numerical example analysis, it was identified that the stock value of banks would be decreased by the diminished used of marketable debt financing resulting from the increase of capital adequacy requirement ratio imposed on the banks realized by the institutional transition.

목차

ABSTRACT
 I. Introduction
 II. Systems and the Literature
 III. Model
 IV. PRS Rule and Incentive Compatible Regulations
 V. IDP Rule and Incentive Compatible Regulations
 VI. Effects of Institutional Change
 VII. Conclusions
 References
 Appendix

키워드

저자

• Suk Heun Yoon [ Professor, Dept. of Finance, Soongsil University ] The 1st author
• Rae Soo Park [ Professor, Dept. of Business Administration, Sookmyung Women’s University ] Corresponding author

참고문헌

발행기관

간행물

표지보기 관심저널 등록

• 간행물명

  한국전문경영인학회 학술대회 발표논문집

• 간기

  반년간

• 수록기간

  2016~2026

• 십진분류

  KDC 325 DDC 330