Forbearance incentive is greater among Sifis: IMF paper

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An International Monetary Fund paper published on Wednesday says regulators may be more willing to offer forbearance to systemically important financial institutions (Sifis) than those that are not.

Marco Espinosa-Vega, Charles Kahn, Rafael Matta and Juan Solé, the paper's authors, use a political economy model to show how regulators' expanded mandate affects forbearance towards Sifis. Forbearance refers to a special agreement between a lender and a borrower to delay a foreclosure, often giving

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