Using evidence from Russia, we explore the effect of the introduction of deposit insurance on bank risk. Drawing on … variation in the ratio of firm deposits to total household and firm deposits before the announcement of deposit insurance, so as … to capture the magnitude of the decrease in market discipline after the introduction of deposit insurance, we demonstrate …

This paper analyzes the effect of the removal of government guarantees on bank risk taking. We exploit the removal of …

We employ proprietary data from a large bank to analyze how - during crisis - deposit insurance affects depositor … behavior. Our focus is on Belgium where the government increased explicit deposit insurance coverage and implemented implicit … deposit insurance arrangements. Estimating sorting below the respective insurance limits shows that depositors are aware of …

We examine the relationship between private bank deposits and macro/fiscal risk in the euro area. We test three … hypotheses: First, private bank deposits relative to Germany are determined by macro/fiscal risk factors. Second, this … relationship is time-varying. Third, time-variation is driven by the level of macro/fiscal risk. Our findings validate all three …

An endogenous growth model with financial intermediation is used to show how public deposit insurance and weak …

risk include an additional stress component introduced by the recent Basel 2.5 regulation. Our optimization with the Basel … relatively low market volatility may have unintended consequences for banks' risk exposure. …

mechanisms for bank risk-taking studied in a large partial equilibrium literature. We show that competitive equilibriums maximize … welfare and yield an optimal level of banks' risk of failure. This result holds even though the risk of failure of competitive …