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 …

Under Basel III rules, banks become subject to a liquidity coverage ratio (LCR) from 2015 onwards, to promote short …

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 …

sources of efficiency and productivity of the foreign and domestic banks operating in the Malaysian banking sector. The … attributed to technological progress. The empirical findings suggest that both the domestic and foreign banks have exhibited …

We develop a dynamic model of banking to assess the effects of liquidity and leverage requirements on banks' insolvency … risk. In this model, banks face taxation, flotation costs of securities, and default costs and maximize shareholder value …