Publication: Bank Risk and Deposit Insurance
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2002-01
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2014-02-26
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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
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“Laeven, Luc. 2002. Bank Risk and Deposit Insurance. World Bank Economic Review. © World Bank. http://hdl.handle.net/10986/17187 License: CC BY-NC-ND 3.0 IGO.”
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World Bank Economic Review
1564-698X
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