Depositors’ Response to Deposit Insurance Reforms: Evidence from Japan, 1990–2005

Journal of Financial Services Research - Tập 31 - Trang 101-122 - 2007
Ikuko Fueda1, Masaru Konishi2
1Japan Center for Economic Research, Tokyo, Japan
2Graduate School of Commerce and Management, Hitotsubashi University, Tokyo, Japan

Tóm tắt

We empirically investigate depositors’ response to various bank risk measures under different deposit insurance regimes. We find that depositor discipline is most significant during periods of full insurance coverage rather than during limited insurance coverage, and that deposit withdrawal induces bank managers to carry out aggressive restructuring. Our evidence suggests that the magnitude of depositor discipline is affected by both the extent of insurance coverage, and by the degree of public confidence in the stability of the financial system and the extent of regulatory forbearance. There is little evidence that higher interest rates at riskier banks promote depositor discipline.

Tài liệu tham khảo

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