Too Big to Fail: the Panic of 1927

Yokoyama, Kazuki (2007): Too Big to Fail: the Panic of 1927. Published in: Discussion Papers in Economics No. 465

Abstract

This paper measures that the Bank of Japan adopted the too-big-to-fail doctrine against the panic of 1927. The results at this paper imply that supported banks had higher closure risk or occupied key positions in the local loan-markets. And this paper finds that the Bank of Japan bailed out solvent banks if they had political importance.

• Item Type: MPRA Paper
• Institution: Graduate School of Economics, Nagoya City University
• Language: English
• Keywords: lender of last resort (LLR); too big to fail; the panic of 1927; bank closure
• Subjects: G - Financial Economics > G2 - Financial Institutions and Services > G28 - Government Policy and Regulation; G - Financial Economics > G2 - Financial Institutions and Services > G21 - Banks ; Depository Institutions ; Micro Finance Institutions ; Mortgages; N - Economic History > N2 - Financial Markets and Institutions > N25 - Asia including Middle East

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