Reserve requirements, the maturity structure of debt, and bank runs

Reserve requirements, the maturity structure of debt, and bank runs / prepared by Eza Al-Zein.

The paper looks at the relationship between reserve requirements and the choice of the maturity structure of external debt in a general equilibrium setup, by incorporating the role of international lenders. A date- and maturity-specific reserve requirement is a fraction of the debt to be deposited i...

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Bibliographic Details
Main Author: Al-Zein, Eza Ghassan, 1978- (Author)
Corporate Author: International Monetary Fund
Format: eBook
Language:English
Published: Washington, D.C. : International Monetary Fund, 2008.
©2008
Series:IMF working paper ; WP/08/108.
Subjects:
Bank reserves > Econometric models.
Banks and banking, Central > Econometric models.
Bank failures > Econometric models.
Debts, Public > Econometric models.
Bank failures > Econometric models
Bank reserves > Econometric models
Banks and banking, Central > Econometric models
Debts, Public > Econometric models
Online Access:Click for online access
Description
Summary:The paper looks at the relationship between reserve requirements and the choice of the maturity structure of external debt in a general equilibrium setup, by incorporating the role of international lenders. A date- and maturity-specific reserve requirement is a fraction of the debt to be deposited in a non-interest bearing account at the central bank. At maturity, the central bank returns the reserves. There exist some specific combinations of date- and maturity-specific reserve requirements that reduce the vulnerability to bank runs. In such setup, lenders may still want to provide new short-term lending to the bank after a bank run.
Item Description:Available in PDF, ePUB, and Mobi formats on the Internet.
Physical Description:1 online resource (26 pages)
Bibliography:Includes bibliographical references.
ISBN:1451914229
9781451914221
1282840622
9781282840621

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