The changing role of banks and the changing value of deposit guarantees

Using a model for pricing deposit guarantees that treats the bank's investments as a portfolio of default-free bonds and risky loans, the authors push back uncertainty to the level of the borrowing firm and thus are able to explore how factors like firm leverage, loan maturity, and correlation effects between the firm's assets and interest rates affect the value of deposit guarantees.

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Year of publication:	1995
Authors:	Ritchken, Peter ; Thomson, James ; Popova, Ivilina
Institutions:	Federal Reserve Bank of Cleveland
Subject:	Deposit insurance \| Bank loans

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Extent:	application/pdf
Series:	Working Paper.
Type of publication:	Book / Working Paper
Language:	English
Notes:	Number 9502
Source:	RePEc - Research Papers in Economics

Persistent link: https://www.econbiz.de/10005526623