Chuang, Hwei-Lin; Lee, Shih-Cheng; Lin, Yi-Chun; Yu, Min-Teh - In: Quantitative Finance 9 (2009) 1, pp. 1-8
This study measures the deposit insurance premium under stochastic interest rates for Taiwan's banks by applying the two-step maximum likelihood estimation method. The estimation results suggest that the current premiums—charging 5, 5.5, and 6 basis points per dollar of insured deposits—are...