This paper analyses the impact of public disclosure of banks’ risk exposure on banks’ risk taking incentives and its … their loan portfolio, public disclosure reduces the probability of banking crises. When asset risk is driven largely by … between asset risk and the deposit rate demanded by informed depositors. …

This paper studies the impact of competition on the determination of interest rates, and on banks’ risk taking … lower entry costs foster competition in deposit rates and reduce banks’ incentives to limit risk exposure. While higher … insurance coverage amplifies this effect, two alternative arrangements (risk based contributions to the deposit insurance fund …

banks. When bank default risk becomes significant, retail deposit insurance creates an asymmetry between banks that operate … in savings-rich regions, which can remain financed at cheap risk-free rates, and in savings-poor regions, which have to …

An important question is whether the financial safety net reduces market discipline on bank risk taking. For countries …

This Paper analyses the effects on ex ante risk-shifting incentives and ex post fiscal costs of three policies that are … risk, but increases the expected fiscal costs of the crises. …

capital requirement and chooses the liquidity buffer that it wants to hold and the risk of its loan portfolio. The equilibrium … choice of risk is shown to be decreasing in the capital requirement, and increasing in the interest rate charged by the LLR …. Moreover, when the LLR does not charge penalty rates, the bank chooses the same level of risk and a smaller liquidity buffer …