The moral hazard problem associated with deposit insurance generates the potential for excessive risk taking on the … mitigating that risk taking. We argue that in the presence of owner/manager agency problems, managerial risk aversion may also … offset the excessive risk taking that stems from moral hazard. Empirical models of bank risk tend to focus either on the …

, and the euro area turmoil. Risk drivers include slow growth abroad and domestically, rising unemployment, and declining … risk and foreign investors, which in turn may pressure bank funding, especially in the absence of long-term domestic …

dominated by well-supervised banks, which pose minimal near-term systemic risk. Although the payment systems are simple and far …