A study of the impact of capital requirements on bank portfolio decisions, showing that the variance of earnings and the incentive to increase leverage are reduced with risk- and leverage-related deposit rates, and that the impact of increased capital requirements on portfolio behavior is...

Under depositor-preference laws, depositors' claims on the assets of failed depository institutions are senior to unsecured general-creditor claims. As a result, depositor preference changes the capital structure of banks and thrifts, thereby affecting the cost of capital for depositories....

With the passage of the Financial Modernization Act in 1999, the FDIC began reforming our system of federal deposit guarantees. Among the possibilities it has recently raised is a merger of its Bank Insurance Fund with its Savings Association Insurance Fund. This Economic Commentary explores...

A discussion of various proposals to allow the Federal Deposit Insurance Corporation to vary the cost of deposit insurance on the basis of risk.

An investigation of the effects of interest rate and credit risk on optimal capital structure and investment decisions. The authors show that with no uncertainty in interest rates, capital regulation will reduce the risk of the bank's assets, but that under interest rate uncertainty, the impact...

An argument that information about the value of the deposit-insurance guarantee is available from market-generated data.

The impacts of deposit insurance and forbearance on the costs and value of uninsured deposits and equity capital are shown under three regimes.