Yoon, Suk Heun; Mazumdar, Sumon C. - In: The Geneva Risk and Insurance Review 21 (1996) 1, pp. 123-141
This article provides incentive compatible regulations that support fairly priced deposit insurance in a competitive banking industry. If informational asymmetry exists between the regulator and banks regarding loan quality, but the regulator can observe actual loan rates charged, then imposing...