The majority of bank liabilities are deposits typically not withdrawn for extended periods. We propose a dynamic model … effects on bank dynamics. Interest rate cuts produce delayed increases in bank risk which are stronger in low rate regimes …. Deposit insurance can exacerbate the deposit dilution and amplify the increase in bank risk …

Russian bank reform strategy concerns the future of state-owned banks. Despite a long-standing official commitment to reducing … the role of the state – and of the Bank of Russia in particular – in the ownership of credit institutions, there is still …