Using evidence from Russia, we explore the effect of the introduction of deposit insurance on bank risk. Drawing on … a difference-in-difference setting in which private domestic banks serve as the treatment group and state and foreign …-owned banks, whose deposit insurance regime does not change, serve as a control group. …

Russia and other Former Soviet Union (FSU) economies. Before the crisis banks do not lend to the real sector of the economy … arises due to the coexistence of adverse selection in a lemons credit market jointly with high government borrowing. The … collapse of the treasury bills market in the financial crisis of August 1998 triggers a change in banks lending behavior. A …

Using evidence from Russia, we explore the effect of the introduction of deposit insurance on bank risk. Drawing on … a difference-in-difference setting in which private domestic banks serve as the treatment group and state and foreign …-owned banks, whose deposit insurance regime does not change, serve as a control group …

stochastic policy mix lead to suboptimal allocations if banks do not internalize insolvency costs. The policy of forbearance may … make banks internalizing such costs and improves the efficiency of intermediation. …

This paper analyzes the influence of market discipline on the risk-taking incentives of banks. It is shown that market … discipline reduces risk if banks can credibly commit to a given level of risk before the interest rate on deposits is set. If … in risk. The reason is that rational depositors anticipate the banks' behavior and therefore ask for a higher risk …

We study the effects of a bank’s engagement in trading. Traditional banking is relationship-based: not scalable, long … leads trading in banks to become increasingly risky, so that problems in managing and regulating trading in banks will …

1) Are Italian mutual banks efficient? Evidence from two different cost frontier techniques, by Juan Sergio Lopez …, Alessandra Appenini, and Stefania P.S. Rossi. The aim of the first paper is to analyze the efficiency of co-operative banks in … small financial institutions that used to operate in a more protected environment. Based on a panel of about 450 banks …

lead to significant changes in the competitive environment should banks consider adding a granularity adjustment to the …

This paper analyzes the influence of market discipline on the risk-taking incentives of banks. It is shown that market … discipline reduces risk if banks can credibly commit to a given level of risk before the interest rate on deposits is set. If … in risk. The reason is that rational depositors anticipate the banks' behavior and therefore ask for a higher risk …

This paper investigates the incentives for banks to bias their internally generated risk estimates. We are able to … by low-capital banks to improve regulatory ratios. At the portfolio level, the difference in borrower probability of … credits. In addition, we find that low-capital banks' risk estimates have less explanatory power than those of high …