Bank liability guarantee schemes have traditionally been viewed as costless measures to shore up investor confidence … and stave off bank runs. However, as the experience of some European countries, most notably Ireland, has demonstrated … the rollover risks of a bank and a government, which are connected through the government's guarantee of bank liabilities …

Bank liability guarantee schemes have traditionally been viewed as costless measures to shore up investor confidence … and stave off bank runs. However, as the experience of some European countries, most notably Ireland, has demonstrated … the rollover risks of a bank and a government, which are connected through the government's guarantee of bank liabilities …

Bank liability guarantee schemes have traditionally been viewed as costless measures to shore up investor confidence … and stave off bank runs. However, as the experiences of some European countries, most notably Ireland, have demonstrated … rollover risks of a bank and a government, which are connected through the government's guarantee of bank liabilities. We show …