Cross-Border Coordination of Prudential Supervision and Deposit Guarantees
30 Pages Posted: 12 Oct 2011
Date Written: October 11, 2011
We study the optimal joint design of prudential supervision and deposit guarantee regulations in a multi-country, integrated banking market, where policy-makers have preferences regarding profitability and stability of the banking sector. Non-coordinated policies will tend to yield too little supervision and too much deposit insurance. The paper concludes with recommendations on policy priorities in this area.
Keywords: deposit guarantees, bank supervision, cross-border coordination, EU
JEL Classification: F36, F59, G28
Suggested Citation: Suggested Citation