The not-so-hidden risks of 'hidden-to-maturity' accounting: on depositor runs and bank resilienceq-fin.RM
Model shows how banks' hidden-to-maturity accounting can mask run risk and lead to financial instability.
problem Run risk and hidden-to-maturity accounting in banking systems.
method Balance sheet model and optimization problem to assess run risk and resilience.
result Held-to-maturity accounting can mask revaluation losses and increase run risk.