http://www.bis.org/cbhub/list/author/author_493/index.rss Research hub papers by author Alan D. Morrison en http://www.ecb.europa.eu/pub/pdf/scpwps/ecbwp1196.pdf European Central Bank Working papers by Alan D. Morrison, Lucy White Reputational contagion and optimal regulatory forbearance, 2010-06-25T12:43:59Z This paper examines common regulation as cause of interbank contagion. Studies based on the correlation of bank assets and the extent of interbank lending may underestimate the likelihood of contagion because they do not incorporate the fact that banks have a common regulator. In our model, the failure of one bank can undermine the public’s confidence in the competence of the banking regulator, and hence in other banks chartered by the same regulator. Thus depositors may withdraw funds from their, unconnected, banks. The optimal regulatory response to this ‘panic’ behaviour can be to privately exhibit forbearance to the initially failing bank in the hope that it - and hence other vulnerable banks - survives. By contrast, public bailouts are ineffective in preventing panics and must be bolstered by other measures such as increased deposit insurance coverage. Regulatory transparency improves confidence ex ante but impedes regulators’ ability to stem panics ex post. Reputational contagion and optimal regulatory forbearance, 2010-06-25T12:43:59Z ECB Full text http://www.ecb.europa.eu/pub/pdf/scpwps/ecbwp1196.pdf Alan D. Morrison Lucy White Alan D. Morrison, Lucy White 2010-05-20 European Central Bank Working papers G21 G28 http://www.nbb.be/doc/ts/publications/WP/WP54En.pdf National Bank of Belgium Working Papers by Xavier Freixas, Gyöngyi Lóránth, Alan D. Morrison and Hyun Song Shin Regulating Financial Conglomerates 2004-06-03T19:22:00Z Regulating Financial Conglomerates 2004-06-03T19:22:00Z Full text http://www.nbb.be/doc/ts/publications/WP/WP54En.pdf Xavier Freixas Alan D. Morrison Gyöngyi Lóránth Hyun Song Shin Xavier Freixas, Gyöngyi Lóránth, Alan D. Morrison and Hyun Song Shin 2004-05 National Bank of Belgium Working Papers