We study the dependence between the downside risk of European banks and insurers. Since the downside risk of banks and … insurers differs, an interesting question from a supervisory point of view is the risk reduction that derives from … diversification within large banks and financial conglomerates. We discuss the limited value of the normal distribution based …

insurance mechanisms, bride wealth qualifies as an importantsecurity enhancing institution: the arrangement covers nearly the …

This paper empirically analyzes moral hazard in car insurance using a dynamic theory of an insuree's dynamic risk (ex …

worker buys an insurance, which gives a constant income and retirement benefits in exchange for the total output. The level …

This paper presents a new axiomatic characterization of risk measures that are additive for independent random … variables. In contrast to previous work, we include an axiom that guarantees monotonicity of the risk measure. Furthermore, the …. The risk measure characterized can be regarded as a mixed exponential premium. …

We study the effects of a bank’s engagement in trading. Traditional banking is relationship-based: not scalable, long …-term oriented, with high implicit capital, and low risk (thanks to the law of large numbers). Trading is transactions …-based: scalable, short-term, capital constrained, and with the ability to generate risk fromconcentrated positions. When a bank …

Under Basel III rules, banks become subject to a liquidity coverage ratio (LCR) from 2015 onwards, to promote short … risk taking. Our error correction regressions indicate that adjustment in the liquidity ratio is balanced towards the …

asymmetric information the banks face the risk of adverse selection. Credit Value-at-Risk (CVaR) regulation counters the problem …Banks provide risky loans to firms which have superior information regarding the quality of their projects. Due to … of low quality, i.e. high risk, loans and therefore reduces the risk of the bank loan portfolio. However, CVaR regulation …

help rural households to pool risk. In this paper I investigate two functions of transfers in Ethiopia: risk pooling and … income redistribution. Unlike most of the literature this paper investigates not only whether but also how much risk pooling … households. However, the contributions of transfers to risk pooling and income redistribution are economically very limited. …