Since the Great Financial Crisis, emerging market economies (EMEs) have made much progress on enhancing their frameworks to manage banking crises. Yet significant challenges remain. Banking sectors and bank ownership are more concentrated in EMEs than in advanced ecomonies (AEs), and banks fund...

This paper tests whether an increase in insured deposits causes banks to become more risky. We use variation introduced by the U.S. Emergency Economic Stabilization Act in October 2008, which increased the deposit insurance coverage from $100,000 to $250,000 per depositor and bank. For some...