Contingent Capital: Economic Rationale and Design Features
January 25, 2011
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Order a Print CopyDisclaimer: This Staff Discussion Note represents the views of the authors and does not necessarily represent IMF views or IMF policy. The views expressed herein should be attributed to the authors and not to the IMF, its Executive Board, or its management. Staff Discussion Notes are published to elicit comments and to further debate.
Summary
The causes of the global financial crisis were multi-faceted but revealed still unresolved weaknesses in national and international financial oversight and resolution frameworks. In particular, many governments in the crisis-hit countries had to provide unprecedented levels of support to contain the crisis and protect financial stability. These interventions have not only contributed to a significant increase in sovereign exposures but, in many countries, they have also risked weakening market discipline and worsening moral hazard.
Subject: Banking, Basel III, Capital adequacy requirements, Contingent capital, Contingent convertible capital, Stocks
Keywords: capital, capital ratio, equity capital, SDN, share price
Pages:
34
Volume:
2011
DOI:
Issue:
001
Series:
Staff Discussion Notes No. 2011/001
Stock No:
SDNEA2011001
ISBN:
9781462304141
ISSN:
2617-6750
