An Incentive Approach to Identifying Financial System Vulnerabilities
20 Pages Posted: 14 Feb 2006
Date Written: December 2000
This paper underscores the importance of the assessment of incentives of the main agents in a financial system as a key element in the analysis of financial system vulnerability and the surveillance over the financial system. We outline a diagnostic approach for the assessment of incentives. This approach highlights the need for additional research on the relationship between institutional structures and financial vulnerabilities.
Keywords: asymmetric information, market structure, incentive assessments
JEL Classification: B4, G15, G38
Suggested Citation: Suggested Citation