Using evidence from Russia, we explore the effect of the introduction of deposit insurance on bank risk. Drawing on … within-bank variation in the ratio of firm deposits to total household and firm deposits, so as to capture the magnitude of …

Using evidence from Russia, we explore the effect of the introduction of deposit insurance on bank risk. Drawing on …

In August 2007 the United Kingdom experienced its first bank run in over 140 years. Although Northern Rock was not a … particularly large bank (it was at the time ranked 7th in terms of assets) it was nevertheless a significant retail bank and a … outside the bank as depositors rushed to withdraw their deposits. There was always a fear that this could spark a systemic run …

This paper studies the strategic interaction between a bank whose deposits are randomly withdrawn, and a lender of last … resort (LLR) that bases its decision on supervisory information on the quality of the bank's assets. The bank is subject to a …. Moreover, when the LLR does not charge penalty rates, the bank chooses the same level of risk and a smaller liquidity buffer …

In August 2007 the United Kingdom experienced its first bank run in over 140 years. Although Northern Rock was not a … particularly large bank (it was at the time ranked 7th in terms of assets) it was nevertheless a significant retail bank and a … outside the bank as depositors rushed to withdraw their deposits. There was always a fear that this could spark a systemic run …

exogenous factors beyond the control of bank managers, however, information disclosure may increase banking sector fragility, as …

: namely, the avoidance of major macroeconomic disruption as a result of bank failures. …

designing a relationship-lending model in which a bank operates as a financial intermediary and centralised monitor. In the … absence of deposit insurance, the bank’s limited liability option creates an incentive problem between the bank and its …, the bank must signal its safety to depositors by maintaining the equity ratio held. The optimal equity ratio is dynamic …

is unobservable to depositors. It turns out that the magnitude of risk taking depends on the type of bank competition. If … the bank is a monopoly or banks compete only in the loan market, deposit insurance has no effect on risk taking. In that …