We consider the joint effect of competition and deposit insurance on risk taking by banks when the riskiness of banks … the bank is a monopoly or banks compete only in the loan market, deposit insurance has no effect on risk taking. In that … case the banks are too risky but extreme risk taking is avoided. In contrast, introducing deposit insurance increases risk …

eliminate the disciplinary effect of transparency regulation. Second, achieving transparency is costly for banks, as it dilutes …Transparency regulation aims at reducing financial fragility by strengthening market discipline. There are however two … elementary properties of banking that may render such regulation detrimental. First, an extensive financial safety net may …

Purpose – The purpose of this paper is to investigate the interface between the banking and insurance sectors. Using … capital market data, the paper aims to discover any significant equity returns around the announcement date of these bank‐insurance … compatible with the general banking philosophy of “fast growth within short‐term horizons.” Based on equity returns, the bank‐insurance …

Purpose – The purpose of this paper is to study the optimal coverage limit in a model of deposit insurance with capital … incorporated capital requirements, risk‐sensitive premium, and partial deposit insurance in a partial equilibrium model. The model … discusses the interaction among risk‐taking banks, ex‐ante heterogeneous depositors, and a deposit insurer. Findings – First …

Purpose – The paper aims to provide an examination of the concept of bancassurance – the combined selling of insurance …

Banks and building societies are increasingly concerned to sell insurance and investment products within their branch …