Hidden Bibliographic Details
| Other authors / contributors: | Weder, Beatrice, author.
International Monetary Fund. Research Department, issuing body.
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| ISBN: | 1475503652
9781475503654
9781475503654
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| Notes: | Title from PDF title page (IMF Web site, viewed May 25, 2012).
"Research Department."
"May 2012."
Includes bibliographical references.
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| Summary: | Claimants to SIFIs receive transfers when governments are forced into bailouts. Ex ante, the bailout expectation lowers daily funding costs. This funding cost differential reflects both the structural level of the government support and the time-varying market valuation for such a support. With large worldwide sample of banks, we estimate the structural subsidy values by exploiting expectations of state support embedded in credit ratings and by using long-run average value of rating bonus. It was already sizable, 60 basis points, as of the end-2007, before the crisis. It increased to 80 basis points by the end-2009.
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| Other form: | Print Version: 9781475503654
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| Standard no.: | 10.5089/9781475503654.001
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