Financial Opening Deposit Insurance And Risk In A Model Of Banking Competition PDF Download
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Author | : Mr.Tito Cordella |
Publisher | : International Monetary Fund |
Total Pages | : 46 |
Release | : 1998-06-01 |
Genre | : Business & Economics |
ISBN | : 1451851995 |
Download Financial Opening, Deposit Insurance, and Risk in a Model of Banking Competition Book in PDF, ePub and Kindle
This paper studies the impact of competition on the determination of interest rates and banks’ risk-taking behavior under different assumptions about deposit insurance and the dissemination of financial information. It finds that lower entry costs foster competition in deposit rate sand reduce banks’ incentives to limit risk exposure. Although higher insurance coverage amplifies this effect, two alternative arrangements (risk-based contributions to the insurance fund and public disclosure of financial information) help to reduce it. Moreover, uninsured but fully informed depositors and risk-based full deposit insurance yield the same equilibrium risk level, which is independent of entry costs. The welfare implications of the different arrangements are also explored.
Author | : Tito Cordella |
Publisher | : |
Total Pages | : |
Release | : 2004 |
Genre | : |
ISBN | : |
Download Financial Opening, Deposit Insurance, and Risk in a Model of Banking Competition Book in PDF, ePub and Kindle
We study the impact of competition on banks' risk-taking behavior under different assumptions about deposit insurance and the dissemination of information. While financial opening increases banks' riskiness, a risk-based deposit insurance or, alternatively, the public disclosure of financial information, are likely to mitigate this effect. Moreover, the limiting cases of uninsured but fully informed depositors, and risk-based full deposit insurance, yield the same equilibrium risk level. Although the welfare consequences of increased competition depend on its impact on risk, financial opening unambiguously improves welfare as we approach the limiting cases.
Author | : Tito Cordella |
Publisher | : |
Total Pages | : |
Release | : 1998 |
Genre | : |
ISBN | : |
Download Financial Opening Deposit Insurance and Risk in Amodel of Banking Competition Book in PDF, ePub and Kindle
Author | : Mr.Gianni De Nicolo |
Publisher | : International Monetary Fund |
Total Pages | : 25 |
Release | : 2003-06-01 |
Genre | : Business & Economics |
ISBN | : 1451853815 |
Download Bank Risk-Taking and Competition Revisited Book in PDF, ePub and Kindle
This study reinvestigates the theoretical relationship between competition in banking and banks' exposure to risk of failure. There is a large existing literature that concludes that when banks are confronted with increased competition, they rationally choose more risky portfolios. We briefly review this literature and argue that it has had a significant influence on regulators and central bankers, causing them to take a less favorable view of competition and encouraging anti-competitive consolidation as a response to banking instability. We then show that existing theoretical analyses of this topic are fragile, since they do not detect two fundamental risk-incentive mechanisms that operate in exactly the opposite direction, causing banks to aquire more risk per portfolios as their markets become more concentrated. We argue that these mechanisms should be essential ingredients of models of bank competition.
Author | : United States. Congress. Senate. Committee on Banking, Housing, and Urban Affairs |
Publisher | : |
Total Pages | : 636 |
Release | : 1990 |
Genre | : Banks and banking |
ISBN | : |
Download Deposit Insurance Reform and Financial Modernization Book in PDF, ePub and Kindle
Author | : United States. Congress. Senate. Committee on Banking, Housing, and Urban Affairs |
Publisher | : |
Total Pages | : 1108 |
Release | : 1990 |
Genre | : Banks and banking, International |
ISBN | : |
Download Deposit Insurance Reform and Financial Modernization Book in PDF, ePub and Kindle
Author | : United States. Department of the Treasury |
Publisher | : |
Total Pages | : 780 |
Release | : 1991 |
Genre | : Banking law |
ISBN | : |
Download Modernizing the Financial System Book in PDF, ePub and Kindle
Author | : United States. Congress. Senate. Committee on Banking, Housing, and Urban Affairs |
Publisher | : |
Total Pages | : 442 |
Release | : 1986 |
Genre | : Banks and banking |
ISBN | : |
Download Deposit insurance reform and related supervisory issues Book in PDF, ePub and Kindle
Author | : United States. Congress. Senate. Committee on Banking, Housing, and Urban Affairs |
Publisher | : |
Total Pages | : 628 |
Release | : 1990 |
Genre | : Banks and banking, International |
ISBN | : |
Download Deposit Insurance Reform and Financial Modernization Book in PDF, ePub and Kindle
Author | : Ms.G. G. Garcia |
Publisher | : International Monetary Fund |
Total Pages | : 50 |
Release | : 1999-04-01 |
Genre | : Business & Economics |
ISBN | : 1451847491 |
Download Deposit Insurance Book in PDF, ePub and Kindle
The paper surveys the characteristics of explicit systems of deposit insurance in 68 countries. It compares these actual practices with a set of best practices that has been adopted by IMF staff for their advice to member countries. These best practices seek to establish a system of deposit insurance that provides incentives for all parties—whether they are directly or indirectly affected by the guarantee—to keep the financial system sound. The paper discerns some convergence toward best practices in recent years, but notes several areas where improvements in the incentive structure are still necessary.