search query: @indexterm Deposit Insurance / total: 14
reference: 2 / 14
| Author: | Gropp, R. Vesala, J. |
| Title: | Deposit insurance, moral hazard and market monitoring |
| Journal: | Review of finance
2004 : VOL. 8:4, p. 571-602 |
| Index terms: | Banking Central banks Deposit insurance Moral hazard |
| Language: | eng |
| Abstract: | This article examines the relationship between deposit insurance, debt-holder monitoring, and risk taking. The model is tested using EU bank level data and it yields evidence consistent with the model, indicating that explicit deposit insurance may serve as a commitment device to limit the safety net and permit monitoring by uninsured subordinated debt-holders. |
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