Economic theories posit that bank liability insurance is designed to serve the public interest
by mitigating systemic risk in the banking system through the reduction of liquidity risk …

The savings/investment process in capitalist economies is organized around bank-like
financial intermediaries (“banks”), making them a central institution of economic growth …

Bank safety nets, originally proposed as a means of stabilizing financial systems, have
become an important destabilizing influence. Government protection of bank debts …

Deposit insurance reduces liquidity risk but can increase insolvency risk by encouraging
reckless behavior. Several US states installed deposit insurance laws before the creation of …

We examine changes in banks' market-to-book ratios over the last decade, focusing on the
dramatic and persistent declines witnessed during the financial crisis. The extent of the …

This paper tests whether an increase in insured deposits causes banks to become more
risky. We use variation introduced by the US Emergency Economic Stabilization Act in …

Faced with a systemic financial sector crisis, policymakers need to make difficult choices
under pressure. Based on the experience of many countries in recent years, few have been …

This paper examines the relationship between deposit insurance and risk-taking behavior
within the credit union industry. Time series tests employing industry average financial ratios …

Central bankers and bank supervisors have for decades spearheaded a global effort to
harmonize regulation of large, internationally active banks under the aegis of the Basel …

This study provides evidence regarding the risk-subsidy and monitoring hypotheses by
investigating the relation between insider ownership and risk-taking in the property-liability …