Banks x Pension Funds (Barajas & Catalán)

Market discipline and conflitcs of interest between banks and pension funds by Adolfo Barajas and Mario Catalán published by IMF. ” We study the behavior of private pension funds as large depositors in a banking system. We find evidence that pension funds exert market discipline and this discipline gets stronger as the share of pension fund deposits in a bank rises. however, conflicts of interest undermine the disciplining role of pension funds.”