Philipp König


The ‘Celtic Crisis’: Guarantees, Transparency and Systemic Liquidity Risk

Staff Working Paper 2013-31 Philipp König, Kartik Anand, Frank Heinemann
Bank liability guarantee schemes have traditionally been viewed as costless measures to shore up investor confidence and prevent bank runs. However, as the experiences of some European countries, most notably Ireland, have demonstrated, the credibility and effectiveness of these guarantees are crucially intertwined with the sovereign’s funding risks.

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