# kaal:claim:2061166-021

**Claim.** Contingent capital supports general risk control and reduces moral hazard by holding shareholders responsible and internalizing the costs of bank failure rather than externalizing them onto taxpayers.

**Type.** mechanism  **Support.** argued

**Source quote.**

> Contingent capital may also support general risk control in financial institutions454 and may contribute to minimizing moral hazard by holding shareholders responsible and internalizing bank failure costs.

**From.** Christoph K. Henkel, Wulf A. Kaal, *Contingent Capital in European Union Bank Restructuring* (2012), IV. CONTINGENT CAPITAL IN BANK RESTRUCTURING, page 53

**Cite as.** Christoph K. Henkel, Wulf A. Kaal, Contingent Capital in European Union Bank Restructuring (2012). SSRN: https://ssrn.com/abstract=2061166

**Verify.** sha256 of source PDF `43625ea260d0fc045e86d3435df50c9d0ca4abf8542e6085a6165be6653b4a7b` at https://raw.githubusercontent.com/wulfkaal/Academic-Papers/main/papers/pdf/Henkel%20and%20Kaal%20-%202012%20-%20Contingent%20Capital%20in%20European%20Union%20Bank%20Restructuring.pdf

**Topics.** contingent-capital, risk-and-incentives, corporate-governance

**Keywords.** contingent-capital, moral-hazard, loss-internalization, shareholder-accountability, risk-control

**Related claims.**

- restates: https://wulfkaal.github.io/claims/1998455-008
- extended_by: https://wulfkaal.github.io/claims/2957645-007
- restates: https://wulfkaal.github.io/claims/1908473-016
- extended_by: https://wulfkaal.github.io/claims/2957645-021
- extends: https://wulfkaal.github.io/claims/1998455-034

**Canonical form.** This markdown file is the canonical hashed representation of the claim. Its sha256 is the content hash used for attestation.