Bank Capital, Liquidity Creation and Deposit Insurance

Result code in IS VaVaI

<a href="https://www.isvavai.cz/riv?ss=detail&h=RIV%2F00216208%3A11230%2F17%3A10337141" target="_blank" >RIV/00216208:11230/17:10337141 - isvavai.cz</a>

Result on the web

<a href="http://dx.doi.org/10.1007/s10693-016-0240-7" target="_blank" >http://dx.doi.org/10.1007/s10693-016-0240-7</a>

DOI - Digital Object Identifier

<a href="http://dx.doi.org/10.1007/s10693-016-0240-7" target="_blank" >10.1007/s10693-016-0240-7</a>

Result language

angličtina

Original language name

Bank Capital, Liquidity Creation and Deposit Insurance

Original language description

This paper examines how the introduction of deposit insurance influences the relationship between bank capital and liquidity creation. As discussed by Berger and Bouwman (Rev Financ Stud 22:3779-3837, 2009), there are two competing hypotheses on this relationship which can be influenced by the presence of deposit insurance. The introduction of a deposit insurance scheme in an emerging market, Russia, provides a natural experiment to empirically investigate this issue. We use the difference-in-difference approach on a large dataset of all Russian banks. Our findings suggest that the introduction of the deposit insurance scheme has different effects on the relationship between capital and bank liquidity creation across different types of banks. It is those banks characterized by relatively high household deposit ratios that are most affected by the introduction of deposit insurance program. For these banks, deposit insurance reduces the impact of capital on liquidity creation. These findings have important policy implications as they suggest that deposit insurance and capital requirements should not be considered separately by bank regulators.

Czech name

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Czech description

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Type

J_imp - Article in a specialist periodical, which is included in the Web of Science database

CEP classification

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OECD FORD branch

50201 - Economic Theory

Project

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Continuities

I - Institucionalni podpora na dlouhodoby koncepcni rozvoj vyzkumne organizace

Publication year

2017

Confidentiality

S - Úplné a pravdivé údaje o projektu nepodléhají ochraně podle zvláštních právních předpisů

Name of the periodical

Journal of Financial Services Research

ISSN

0920-8550

e-ISSN

—

Volume of the periodical

51

Issue of the periodical within the volume

1

Country of publishing house

US - UNITED STATES

Number of pages

27

Pages from-to

97-123

UT code for WoS article

000392942300004

EID of the result in the Scopus database

2-s2.0-84959109491