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temporary increase in the government protection of non-deposit liabilities and bank assets. In most cases, these guarantees have …
Persistent link: https://www.econbiz.de/10013050320
Countries around the world differ substantially in the relative importance of their banks and capital markets in … empirical evidence showing that countries with explicit deposit insurance and a high degree of state-owned bank assets have … smaller equity markets, a lower number of publicly traded firms and a smaller amount of bank credit to the private sector …
Persistent link: https://www.econbiz.de/10012785359
paper seeks to measure and compare how well authorities in 56 countries controlled bank risk shifting during the 1990s …
Persistent link: https://www.econbiz.de/10012787065
We construct a new measure of the changing generosity of deposit insurance for many countries, empirically model the international influences on the adoption and generosity of deposit insurance, and show that the expansion of deposit insurance generosity increased asset risk in banking systems....
Persistent link: https://www.econbiz.de/10012912177
macroeconomic shocks, quality of bank regulations, and institutional development, we find that both private and public interests, as …
Persistent link: https://www.econbiz.de/10012760429
: the limit it imposes on the central bank as domestic lender of last resort, and the resulting exposure to dollar liquidity …%u201D) to reduce self-insurance costs while limiting bank losses in the event of a run …
Persistent link: https://www.econbiz.de/10012761262
Explicit deposit insurance has been spreading rapidly in recent years, even to countries with low levels of financial and institutional development. Economic theory indicates that deposit-insurance design features interact--for good or ill--with country-specific elements of the financial and...
Persistent link: https://www.econbiz.de/10012763112
clears only at fire-sale prices following a large number of bank failures. The gains from acquiring assets at fire …-sale prices make it attractive for banks to hold liquid assets. We show that the resulting choice of bank liquidity is counter … crises may be desirable ex post. However, policies aimed at resolving crises affect ex-ante bank liquidity in subtle ways …
Persistent link: https://www.econbiz.de/10013149978
Reserve Board of Governors demonstrate that deposit insurance influenced the composition of bank suspensions in these states … each system, the bank failure rate rose to an unsustainable height and the system ceased operations …
Persistent link: https://www.econbiz.de/10012778253
We show that maturity transformation does not expose banks to significant interest rate risk|it hedges it. This is due to banks' deposit franchise. The deposit franchise gives banks substantial market power over deposits, allowing them to pay deposit rates that are low and insensitive to market...
Persistent link: https://www.econbiz.de/10012919327