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

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Bibliographic Details
Author / Creator:	Al-Zein, Eza Ghassan, 1978- author.
Imprint:	Washington, D.C. : International Monetary Fund, 2008. ©2008
Description:	1 online resource (26 pages)
Language:	English
Series:	IMF working paper ; WP/08/108 IMF working paper ; WP/08/108.
Subject:	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. Electronic books.
Format:	E-Resource Book
URL for this record:	http://pi.lib.uchicago.edu/1001/cat/bib/12501072

Hidden Bibliographic Details
Other uniform titles:	IMF eLibrary.
Other authors / contributors:	International Monetary Fund.
ISBN:	1451914229 9781451914221 1282840622 9781282840621 9781451914221
Notes:	Available in PDF, ePUB, and Mobi formats on the Internet. Includes bibliographical references.
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.

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