Showing 1 - 10 of 4,444
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 …
Persistent link: https://www.econbiz.de/10012421243
This paper analyzes the effect of the removal of government guarantees on bank risk taking. We exploit the removal of …
Persistent link: https://www.econbiz.de/10010257239
In the presence of macroeconomic shocks severe enough to threaten the liquidity or solvency of the banking system, the regulator can rely on the funds concentration effect to save long-term investment projects. Some banks are forced into bankruptcy with the result that other banks obtain more...
Persistent link: https://www.econbiz.de/10011400865
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 …
Persistent link: https://www.econbiz.de/10014430743
We investigate a banking system subject to repeated macroeconomic shocks and show that without deposit rate control, the banking system collapses with certainty. Any initial level of reserves will delay the collapse but not avoid it. Even without a banking collapse, the economy still converges...
Persistent link: https://www.econbiz.de/10011399268
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 …
Persistent link: https://www.econbiz.de/10011982211
Interbank claims are a concern to regulators as they might facilitate the dissemination of defaults and generate spill-over effects. Building on a simple model, this paper introduces a measure of the spill-over effects that a bank generates when it defaults. The measure is based on an explicit...
Persistent link: https://www.econbiz.de/10010509633
An endogenous growth model with financial intermediation is used to show how public deposit insurance and weak …
Persistent link: https://www.econbiz.de/10011402648
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. …
Persistent link: https://www.econbiz.de/10011587953
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 …
Persistent link: https://www.econbiz.de/10009707593