"This paper examines the implications of bank activity and short-term funding strategies for bank risk and returns …-interest income generating activities such as trading increases the rate of return on assets, and it may offer some risk …, although it can offer some risk reduction at commonly observed low levels of non-deposit funding. A sizeable proportion of …

"The most basic argument for insurance is that it reduces financial risk. But since insurance opens up new … patient, it is not immediately obvious that insurance will in practice reduce financial risk. The authors analyze the effect …'s own per capita income. The estimates of the effect of insurance on financial risk allow for the possible endogeneity of …