Deposit Insurance and Financial Development

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Deposit Insurance and Financial Development

We thank the World Bank for funding and Asli Demirguc-Kunt and participants at the World Bank conference on deposit insurance for their comments and suggestions. The views expressed are the authors' own and do not necessarily reflect those of the World Bank, its Board of Directors, or the countries they represent.

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The Run for Safety: Financial Fragility and Deposit Insurance

We examine the liquidity shocks to banks that can arise during a crisis due to concerns about safety by uninsured depositors. The analysis exploits exogenous changes in the deposit insurance threshold and a unique dataset with detailed information on balances and depositor characteristics for every bank account in Denmark. Our key result is that lowering the deposit insurance threshold during a...

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STRENGTHENING FINANCIAL INFRASTRUCTURE Deposit Insurance and Lending of Last Resort

Copyright reserved. Subject to the exceptions provided for by law, no part of this publication may be reproduced and/or published in print, by photocopying, on microfilm or in any other way without the written consent of the copyrightholder(s); the same applies to whole or partial adaptions. The publisher retains the sole right to collect from third parties fees payable in respect of copying an...

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Bank Regulation and Deposit Insurance

The subject of government bank regulation is intimately intertwined with that of government deposit insurance. If the government is to insure bank deposits, it should also have some say in the risks that insured banks are allowed to take, otherwise it would leave itself wide open to unlimited potential losses. John H. Kareken (in this issue) comes close to arguing that banks without government ...

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Optimal Deposit Insurance

This paper characterizes the optimal level of deposit insurance (DI) when bank runs are possible. In a wide variety of environments, the optimal level of DI only depends on three sufficient statistics: the sensitivity of the likelihood of bank failure with respect to the level of DI, the utility loss caused by bank failure (which is a function of the drop in depositors’ consumption) and the exp...

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ژورنال

عنوان ژورنال: Journal of Money, Credit, and Banking

سال: 2005

ISSN: 1538-4616

DOI: 10.1353/mcb.2005.0004