Forbearance incentive is greater among Sifis: IMF paper
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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