Bank Risk and Deposit Insurance
Arguing that a relatively high cost of deposit insurance indicates that a bank takes excessive risks, this article estimates the cost of deposit insurance for a large sample of banks in 14 economies to assess the relationship between the risk-takin...
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| Format: | Journal Article |
| Language: | English en_US |
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2014
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| Online Access: | http://documents.worldbank.org/curated/en/2002/01/17736930/bank-risk-deposit-insurance http://hdl.handle.net/10986/17187 |
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okr-10986-17187 |
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oai_dc |
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Digital Repository |
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Foreign Institution |
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Digital Repositories |
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World Bank Open Knowledge Repository |
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World Bank |
| language |
English en_US |
| topic |
ACCOUNTING ASSET VALUE ASSET VALUES ASSET VOLATILITY BAILOUT BANK ASSET BANK CLOSURE BANK CONCENTRATION BANK CREDITORS BANK DEBT BANK DEBTS BANK DISTRESS BANK EQUITY BANK FAILURE BANK FAILURES BANK INTERVENTION BANK LIABILITIES BANK MARKET BANK MONITORING BANK OF KOREA BANK REGULATION BANK REGULATORS BANK RESTRUCTURING BANK RISK BANK RISK TAKING BANK RUNS BANKING ASSETS BANKING CRISES BANKING CRISIS BANKING MARKET BANKING RISKS BANKING SECTOR BANKING SECTOR ASSETS BANKING SYSTEM BANKING SYSTEM STABILITY BANKING SYSTEM VULNERABILITY BANKING SYSTEMS BANKS BASIS POINTS BLANKET GUARANTEE BONDHOLDERS CALL OPTION CALL OPTIONS CAPITAL FORBEARANCE CAPITAL REGULATION CAPITALIZATION CITY BANK CITY BANKS COMMERCIAL BANK COMMERCIAL BANKS CONCENTRATION RATIO CONSUMER PRICE INDEX CORPORATE GOVERNANCE CORPORATE LIABILITIES COST OF DEPOSIT INSURANCE COST OF INSURANCE COSTS OF DEPOSIT INSURANCE COUNTRY RISK CREDIT BANK CREDIT BANKS CREDIT GROWTH CRISIS COUNTRIES DEBT DEBT ISSUE DEBT LIABILITIES DEBTS DEPOSIT DEPOSIT INSURANCE DEPOSIT INSURANCE AGENCY DEPOSIT INSURANCE FUND DEPOSIT INSURANCE FUNDS DEPOSIT INSURANCE INCREASE DEPOSIT INSURANCE INCREASES DEPOSIT INSURANCE LITERATURE DEPOSIT INSURANCE PREMIUM DEPOSIT INSURANCE PREMIUMS DEPOSIT INSURANCE PRICING DEPOSIT INSURANCE PRICING SCHEME DEPOSIT INSURANCE SCHEMES DEPOSIT INSURANCE SERVICES DEPOSIT INSURANCE SYSTEM DEPOSITOR DEPOSITOR SAFETY DEPOSITORS DEPOSITORY DEPOSITORY INSTITUTIONS DEPOSITS DERIVATIVE CONTRACT DIVIDEND DIVIDEND YIELD DIVIDEND YIELDS DIVIDENDS DUMMY VARIABLE DUMMY VARIABLES EMERGING MARKET EMERGING MARKET ECONOMIES EMERGING MARKETS ENFORCEABILITY EQUITY RETURNS EQUITY VALUE EQUITY VALUES EQUITY VOLATILITY EXCESSIVE RISKS EXPLICIT DEPOSIT EXPLICIT DEPOSIT INSURANCE EXPLICIT DEPOSIT INSURANCE SCHEME EXPLICIT DEPOSIT INSURANCE SCHEMES EXPLICIT INSURANCE FACE VALUE FINANCIAL CRISIS FINANCIAL DISTRESS FINANCIAL INSTITUTION FINANCIAL INSTITUTIONS FINANCIAL INTERMEDIATION FINANCIAL LIBERALIZATION FINANCIAL SAFETY NET FINANCIAL SAFETY NETS FINANCIAL SERVICES FINANCIAL STRUCTURE FINANCIAL SYSTEM FINANCIAL SYSTEMS FLAT-RATE PREMIUMS FORECASTING BANK DISTRESS FOREIGN BANK FOREIGN BANK PENETRATION FOREIGN BANKS FOREIGN ENTRY FOREIGN EXCHANGE GOVERNMENT DEPOSIT GOVERNMENT DEPOSIT INSURANCE GOVERNMENT INTERVENTION GROSS DOMESTIC PRODUCT GROUP LOAN GUARANTOR HOUSING IMPLICIT DEPOSIT INSURANCE IMPLICIT INSURANCE INCENTIVE PROBLEMS INFLATION INFLATION RATE INFLATION RATES INFORMED DEPOSITORS INSURANCE COST INSURANCE COSTS INSURED BANK INSURED BANKS INSURED DEPOSITS INTEREST RATE INTERNATIONAL BANK INTERNATIONAL FINANCE INTERNATIONAL FINANCIAL STATISTICS LARGE BANKS LAWS LEGAL SYSTEM LEGAL SYSTEMS LEVEL OF RISK LIQUID RESERVES LIQUIDITY LOAN LOAN SIZE LONG-TERM CREDIT MARKET DISCIPLINE MARKET PRICES MARKET STRUCTURE MARKET VALUE MATURITY MODEL DEPOSIT INSURANCE MODEL OF DEPOSIT INSURANCE MONETARY FUND MORAL HAZARD MORAL HAZARDS MULTINATIONAL BANKS OFFICIAL DEPOSIT INSURANCE OPTION PRICING MODEL OPTION-PRICING ESTIMATES OWNERSHIP DATA OWNERSHIP OF BANKS OWNERSHIP STRUCTURE OWNERSHIP STRUCTURES PARTIAL DEPOSIT INSURANCE PORTFOLIO PORTFOLIO RISK PROXY FOR BANK RISK PUT OPTION PUT OPTIONS RECAPITALIZATION REGIONAL BANKS REGULATORY FORBEARANCE RESTRICTIONS ON ENTRY RETURN RETURN ON ASSETS RISK TAKING RISK-TAKING BEHAVIOR OF BANKS RISKY BANK SHAREHOLDER SMALL BANKS STOCK MARKET STOCK MARKET CAPITALIZATION STOCK MARKETS SUBSIDIARY TOTAL DEBT TRADING TREASURY TURNOVER UNDERLYING ASSET UNINSURED DEBTS VALUE OF ASSETS VALUE OF BANK ASSETS VALUE OF DEPOSIT VALUE OF DEPOSIT INSURANCE WEAK BANKS |
| spellingShingle |
ACCOUNTING ASSET VALUE ASSET VALUES ASSET VOLATILITY BAILOUT BANK ASSET BANK CLOSURE BANK CONCENTRATION BANK CREDITORS BANK DEBT BANK DEBTS BANK DISTRESS BANK EQUITY BANK FAILURE BANK FAILURES BANK INTERVENTION BANK LIABILITIES BANK MARKET BANK MONITORING BANK OF KOREA BANK REGULATION BANK REGULATORS BANK RESTRUCTURING BANK RISK BANK RISK TAKING BANK RUNS BANKING ASSETS BANKING CRISES BANKING CRISIS BANKING MARKET BANKING RISKS BANKING SECTOR BANKING SECTOR ASSETS BANKING SYSTEM BANKING SYSTEM STABILITY BANKING SYSTEM VULNERABILITY BANKING SYSTEMS BANKS BASIS POINTS BLANKET GUARANTEE BONDHOLDERS CALL OPTION CALL OPTIONS CAPITAL FORBEARANCE CAPITAL REGULATION CAPITALIZATION CITY BANK CITY BANKS COMMERCIAL BANK COMMERCIAL BANKS CONCENTRATION RATIO CONSUMER PRICE INDEX CORPORATE GOVERNANCE CORPORATE LIABILITIES COST OF DEPOSIT INSURANCE COST OF INSURANCE COSTS OF DEPOSIT INSURANCE COUNTRY RISK CREDIT BANK CREDIT BANKS CREDIT GROWTH CRISIS COUNTRIES DEBT DEBT ISSUE DEBT LIABILITIES DEBTS DEPOSIT DEPOSIT INSURANCE DEPOSIT INSURANCE AGENCY DEPOSIT INSURANCE FUND DEPOSIT INSURANCE FUNDS DEPOSIT INSURANCE INCREASE DEPOSIT INSURANCE INCREASES DEPOSIT INSURANCE LITERATURE DEPOSIT INSURANCE PREMIUM DEPOSIT INSURANCE PREMIUMS DEPOSIT INSURANCE PRICING DEPOSIT INSURANCE PRICING SCHEME DEPOSIT INSURANCE SCHEMES DEPOSIT INSURANCE SERVICES DEPOSIT INSURANCE SYSTEM DEPOSITOR DEPOSITOR SAFETY DEPOSITORS DEPOSITORY DEPOSITORY INSTITUTIONS DEPOSITS DERIVATIVE CONTRACT DIVIDEND DIVIDEND YIELD DIVIDEND YIELDS DIVIDENDS DUMMY VARIABLE DUMMY VARIABLES EMERGING MARKET EMERGING MARKET ECONOMIES EMERGING MARKETS ENFORCEABILITY EQUITY RETURNS EQUITY VALUE EQUITY VALUES EQUITY VOLATILITY EXCESSIVE RISKS EXPLICIT DEPOSIT EXPLICIT DEPOSIT INSURANCE EXPLICIT DEPOSIT INSURANCE SCHEME EXPLICIT DEPOSIT INSURANCE SCHEMES EXPLICIT INSURANCE FACE VALUE FINANCIAL CRISIS FINANCIAL DISTRESS FINANCIAL INSTITUTION FINANCIAL INSTITUTIONS FINANCIAL INTERMEDIATION FINANCIAL LIBERALIZATION FINANCIAL SAFETY NET FINANCIAL SAFETY NETS FINANCIAL SERVICES FINANCIAL STRUCTURE FINANCIAL SYSTEM FINANCIAL SYSTEMS FLAT-RATE PREMIUMS FORECASTING BANK DISTRESS FOREIGN BANK FOREIGN BANK PENETRATION FOREIGN BANKS FOREIGN ENTRY FOREIGN EXCHANGE GOVERNMENT DEPOSIT GOVERNMENT DEPOSIT INSURANCE GOVERNMENT INTERVENTION GROSS DOMESTIC PRODUCT GROUP LOAN GUARANTOR HOUSING IMPLICIT DEPOSIT INSURANCE IMPLICIT INSURANCE INCENTIVE PROBLEMS INFLATION INFLATION RATE INFLATION RATES INFORMED DEPOSITORS INSURANCE COST INSURANCE COSTS INSURED BANK INSURED BANKS INSURED DEPOSITS INTEREST RATE INTERNATIONAL BANK INTERNATIONAL FINANCE INTERNATIONAL FINANCIAL STATISTICS LARGE BANKS LAWS LEGAL SYSTEM LEGAL SYSTEMS LEVEL OF RISK LIQUID RESERVES LIQUIDITY LOAN LOAN SIZE LONG-TERM CREDIT MARKET DISCIPLINE MARKET PRICES MARKET STRUCTURE MARKET VALUE MATURITY MODEL DEPOSIT INSURANCE MODEL OF DEPOSIT INSURANCE MONETARY FUND MORAL HAZARD MORAL HAZARDS MULTINATIONAL BANKS OFFICIAL DEPOSIT INSURANCE OPTION PRICING MODEL OPTION-PRICING ESTIMATES OWNERSHIP DATA OWNERSHIP OF BANKS OWNERSHIP STRUCTURE OWNERSHIP STRUCTURES PARTIAL DEPOSIT INSURANCE PORTFOLIO PORTFOLIO RISK PROXY FOR BANK RISK PUT OPTION PUT OPTIONS RECAPITALIZATION REGIONAL BANKS REGULATORY FORBEARANCE RESTRICTIONS ON ENTRY RETURN RETURN ON ASSETS RISK TAKING RISK-TAKING BEHAVIOR OF BANKS RISKY BANK SHAREHOLDER SMALL BANKS STOCK MARKET STOCK MARKET CAPITALIZATION STOCK MARKETS SUBSIDIARY TOTAL DEBT TRADING TREASURY TURNOVER UNDERLYING ASSET UNINSURED DEBTS VALUE OF ASSETS VALUE OF BANK ASSETS VALUE OF DEPOSIT VALUE OF DEPOSIT INSURANCE WEAK BANKS Laeven, Luc Bank Risk and Deposit Insurance |
| description |
Arguing that a relatively high cost of
deposit insurance indicates that a bank takes excessive
risks, this article estimates the cost of deposit insurance
for a large sample of banks in 14 economies to assess the
relationship between the risk-taking behavior of banks and
their corporate governance structure. The results suggest
that banks with concentrated ownership tend to take the
greatest risks, and those with dispersed ownership engage in
a relatively low level of risk taking. Moreover, as a proxy
for bank risk, the cost of deposit insurance has some power
in predicting bank distress |
| format |
Journal Article |
| author |
Laeven, Luc |
| author_facet |
Laeven, Luc |
| author_sort |
Laeven, Luc |
| title |
Bank Risk and Deposit Insurance |
| title_short |
Bank Risk and Deposit Insurance |
| title_full |
Bank Risk and Deposit Insurance |
| title_fullStr |
Bank Risk and Deposit Insurance |
| title_full_unstemmed |
Bank Risk and Deposit Insurance |
| title_sort |
bank risk and deposit insurance |
| publishDate |
2014 |
| url |
http://documents.worldbank.org/curated/en/2002/01/17736930/bank-risk-deposit-insurance http://hdl.handle.net/10986/17187 |
| _version_ |
1764433083360083968 |
| spelling |
okr-10986-171872021-04-23T14:03:29Z Bank Risk and Deposit Insurance Laeven, Luc ACCOUNTING ASSET VALUE ASSET VALUES ASSET VOLATILITY BAILOUT BANK ASSET BANK CLOSURE BANK CONCENTRATION BANK CREDITORS BANK DEBT BANK DEBTS BANK DISTRESS BANK EQUITY BANK FAILURE BANK FAILURES BANK INTERVENTION BANK LIABILITIES BANK MARKET BANK MONITORING BANK OF KOREA BANK REGULATION BANK REGULATORS BANK RESTRUCTURING BANK RISK BANK RISK TAKING BANK RUNS BANKING ASSETS BANKING CRISES BANKING CRISIS BANKING MARKET BANKING RISKS BANKING SECTOR BANKING SECTOR ASSETS BANKING SYSTEM BANKING SYSTEM STABILITY BANKING SYSTEM VULNERABILITY BANKING SYSTEMS BANKS BASIS POINTS BLANKET GUARANTEE BONDHOLDERS CALL OPTION CALL OPTIONS CAPITAL FORBEARANCE CAPITAL REGULATION CAPITALIZATION CITY BANK CITY BANKS COMMERCIAL BANK COMMERCIAL BANKS CONCENTRATION RATIO CONSUMER PRICE INDEX CORPORATE GOVERNANCE CORPORATE LIABILITIES COST OF DEPOSIT INSURANCE COST OF INSURANCE COSTS OF DEPOSIT INSURANCE COUNTRY RISK CREDIT BANK CREDIT BANKS CREDIT GROWTH CRISIS COUNTRIES DEBT DEBT ISSUE DEBT LIABILITIES DEBTS DEPOSIT DEPOSIT INSURANCE DEPOSIT INSURANCE AGENCY DEPOSIT INSURANCE FUND DEPOSIT INSURANCE FUNDS DEPOSIT INSURANCE INCREASE DEPOSIT INSURANCE INCREASES DEPOSIT INSURANCE LITERATURE DEPOSIT INSURANCE PREMIUM DEPOSIT INSURANCE PREMIUMS DEPOSIT INSURANCE PRICING DEPOSIT INSURANCE PRICING SCHEME DEPOSIT INSURANCE SCHEMES DEPOSIT INSURANCE SERVICES DEPOSIT INSURANCE SYSTEM DEPOSITOR DEPOSITOR SAFETY DEPOSITORS DEPOSITORY DEPOSITORY INSTITUTIONS DEPOSITS DERIVATIVE CONTRACT DIVIDEND DIVIDEND YIELD DIVIDEND YIELDS DIVIDENDS DUMMY VARIABLE DUMMY VARIABLES EMERGING MARKET EMERGING MARKET ECONOMIES EMERGING MARKETS ENFORCEABILITY EQUITY RETURNS EQUITY VALUE EQUITY VALUES EQUITY VOLATILITY EXCESSIVE RISKS EXPLICIT DEPOSIT EXPLICIT DEPOSIT INSURANCE EXPLICIT DEPOSIT INSURANCE SCHEME EXPLICIT DEPOSIT INSURANCE SCHEMES EXPLICIT INSURANCE FACE VALUE FINANCIAL CRISIS FINANCIAL DISTRESS FINANCIAL INSTITUTION FINANCIAL INSTITUTIONS FINANCIAL INTERMEDIATION FINANCIAL LIBERALIZATION FINANCIAL SAFETY NET FINANCIAL SAFETY NETS FINANCIAL SERVICES FINANCIAL STRUCTURE FINANCIAL SYSTEM FINANCIAL SYSTEMS FLAT-RATE PREMIUMS FORECASTING BANK DISTRESS FOREIGN BANK FOREIGN BANK PENETRATION FOREIGN BANKS FOREIGN ENTRY FOREIGN EXCHANGE GOVERNMENT DEPOSIT GOVERNMENT DEPOSIT INSURANCE GOVERNMENT INTERVENTION GROSS DOMESTIC PRODUCT GROUP LOAN GUARANTOR HOUSING IMPLICIT DEPOSIT INSURANCE IMPLICIT INSURANCE INCENTIVE PROBLEMS INFLATION INFLATION RATE INFLATION RATES INFORMED DEPOSITORS INSURANCE COST INSURANCE COSTS INSURED BANK INSURED BANKS INSURED DEPOSITS INTEREST RATE INTERNATIONAL BANK INTERNATIONAL FINANCE INTERNATIONAL FINANCIAL STATISTICS LARGE BANKS LAWS LEGAL SYSTEM LEGAL SYSTEMS LEVEL OF RISK LIQUID RESERVES LIQUIDITY LOAN LOAN SIZE LONG-TERM CREDIT MARKET DISCIPLINE MARKET PRICES MARKET STRUCTURE MARKET VALUE MATURITY MODEL DEPOSIT INSURANCE MODEL OF DEPOSIT INSURANCE MONETARY FUND MORAL HAZARD MORAL HAZARDS MULTINATIONAL BANKS OFFICIAL DEPOSIT INSURANCE OPTION PRICING MODEL OPTION-PRICING ESTIMATES OWNERSHIP DATA OWNERSHIP OF BANKS OWNERSHIP STRUCTURE OWNERSHIP STRUCTURES PARTIAL DEPOSIT INSURANCE PORTFOLIO PORTFOLIO RISK PROXY FOR BANK RISK PUT OPTION PUT OPTIONS RECAPITALIZATION REGIONAL BANKS REGULATORY FORBEARANCE RESTRICTIONS ON ENTRY RETURN RETURN ON ASSETS RISK TAKING RISK-TAKING BEHAVIOR OF BANKS RISKY BANK SHAREHOLDER SMALL BANKS STOCK MARKET STOCK MARKET CAPITALIZATION STOCK MARKETS SUBSIDIARY TOTAL DEBT TRADING TREASURY TURNOVER UNDERLYING ASSET UNINSURED DEBTS VALUE OF ASSETS VALUE OF BANK ASSETS VALUE OF DEPOSIT VALUE OF DEPOSIT INSURANCE WEAK BANKS Arguing that a relatively high cost of deposit insurance indicates that a bank takes excessive risks, this article estimates the cost of deposit insurance for a large sample of banks in 14 economies to assess the relationship between the risk-taking behavior of banks and their corporate governance structure. The results suggest that banks with concentrated ownership tend to take the greatest risks, and those with dispersed ownership engage in a relatively low level of risk taking. Moreover, as a proxy for bank risk, the cost of deposit insurance has some power in predicting bank distress 2014-02-26T21:45:39Z 2014-02-26T21:45:39Z 2002-01 Journal Article http://documents.worldbank.org/curated/en/2002/01/17736930/bank-risk-deposit-insurance World Bank Economic Review http://hdl.handle.net/10986/17187 English en_US CC BY-NC-ND 3.0 IGO http://creativecommons.org/licenses/by-nc-nd/3.0/igo World Bank Publications & Research :: Journal Article Publications & Research |