Deposit insurance is a tool to enhance banking stability in a country, by augmenting the
confidence of the bank depositors and reducing their incentive to run on banks. Over the …

This paper investigates the forecasting accuracy of bankruptcy hazard rate models for US
companies over the time period 1962–1999 using both yearly and monthly observation …

The potential failure of a large bank presents vexing questions for policymakers. It poses
significant risks to other financial institutions, to the financial system as a whole, and possibly …

Empirical evidence is presented to show that in modern times banks can hedge liquidity
shocks but could not do so prior to FDIC insurance. However, the government's limitations in …

I analyze the effects of bank characteristics and macroeconomic shocks on interest rate risk-
management behavior of commercial banks. My findings are consistent with hedging …

We adapt structural models of default risk to take into account the special nature of bank
assets. The usual assumption of lognormally distributed asset values is not appropriate for …

This article shows that risk-based deposit insurance premiums generate smaller procyclical
effects than do risk-based capital requirements. Thus, Basel II's procyclical impact can be …

This paper studies the optimal determination of deposit insurance when bank runs are
possible. We show that the welfare impact of changes in the level of deposit insurance …

In response to the economic and financial crisis, the EU has adopted a new regulatory
framework of the banking sector. Its central elements consist of new capital requirements …

Environment fluctuation and increasing competitiveness between corporations lead to make
the achievement of proper benefit more difficult. Therefore, financial decision making …