분야
pptxIntroduction
Basic concept : Charter value theory
Discussion
How can we explain the recent excessive
risk-taking of saving banks from the perspective of ‘charter value theory’?
Basic concept : Put option
Basic concept : Competition and asymmetric
credit information of credit market
Conclusion
Savings bank suspension
: a suspension of banks which are below
standard of BIS capital adequacy ratio
A lot of savings banks
are suspended in 2011
Depositors
more than 50 million won and
subordinated bond-holders
lost their principal
Charter value
: the value of a bank being able to continue to
do business in the future.
Charter value would be lost in case of bankruptcy
because bank cannot manage bank anymore
It has the ability to reduce moral hazard.
