While the main conceptual issue related to deposit insurances is the moral hazard risk, the main technical issue is … inaccurate calibration of the implied volatility. This issue can raise the risk of generating an arbitrage. In this paper, first …, we discuss that by imposing the no-moral-hazard risk, the removal of arbitrage is equivalent to removing the static …

level must be reflective of the institution's specific risk preferences and liquidity risk management policies as anchored … these procedures in the financial risk management practices …