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Reciprocal brokered deposits and bank risk

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  • Shaffer, Sherrill

Abstract

Economic theory predicts that reciprocal brokered deposits, by enhancing deposit insurance coverage, may reduce market discipline for banks, permitting them to take more risk in various dimensions. A newly available dataset provides empirical evidence related to that hypothesis.

Suggested Citation

  • Shaffer, Sherrill, 2012. "Reciprocal brokered deposits and bank risk," Economics Letters, Elsevier, vol. 117(2), pages 383-385.
    • Handle: RePEc:eee:ecolet:v:117:y:2012:i:2:p:383-385
    DOI: 10.1016/j.econlet.2012.05.041
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    References listed on IDEAS

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    1. Cole, Rebel A. & Gunther, Jeffery W., 1995. "Separating the likelihood and timing of bank failure," Journal of Banking & Finance, Elsevier, vol. 19(6), pages 1073-1089, September.
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    5. DeYoung, Robert, 2003. "De Novo Bank Exit," Journal of Money, Credit and Banking, Blackwell Publishing, vol. 35(5), pages 711-728, October.
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    Cited by:

    1. Sherrill Shaffer, 2013. "Reciprocal deposits and incremental bank risk," Applied Economics, Taylor & Francis Journals, vol. 45(34), pages 4857-4860, December.
    2. Doug Dyer & Majdi Quttainah & Pengfei Ye, 2015. "Privatization, intermediation and performance: global evidence," Eurasian Economic Review, Springer;Eurasia Business and Economics Society, vol. 5(2), pages 207-229, December.
    3. Li, Guo & Shaffer, Sherrill, 2015. "Reciprocal brokered deposits, bank risk, and recent deposit insurance policy," The North American Journal of Economics and Finance, Elsevier, vol. 33(C), pages 366-384.
    4. Felix Noth & Lena Tonzer, 2017. "Bank risk proxies and the crisis of 2007/09: a comparison," Applied Economics Letters, Taylor & Francis Journals, vol. 24(7), pages 498-501, April.

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    More about this item

    Keywords

    Reciprocal brokered deposits; Moral hazard; Bank risk;
    All these keywords.

    JEL classification:

    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages

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