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Evaluating the effects of the EU directive proposal for risk-based deposit insurance premiums in Spain

Author

Listed:
  • Pilar Gómez-Fernández-Aguado

    () (Department of Financial Economics and Accounting, Universidad de Jaén)

  • Antonio Partal-Ureña

    () (Department of Financial Economics and Accounting, Universidad de Jaén)

  • Antonio Trujillo-Ponce

    () (Department of Financial Economics and Accounting, Universidad Pablo de Olavide)

Abstract

Using This paper analyzes the effects on the Spanish banking system of the EU proposal for a new Directive on deposit insurance systems based on risk-sensitive premiums. To do this, we examine the risk profile of Spanish banks during the 2007-2011 period according to several indicators reflecting capital adequacy, asset quality, profitability and liquidity. We conclude that most of banks would increase their contributions with the proposed system, evidencing the cyclical character of the new model. Our results also suggest that risk-based schemes could provide an incentive for sound management by reducing the premiums for those banks with better risk profiles.

Suggested Citation

  • Pilar Gómez-Fernández-Aguado & Antonio Partal-Ureña & Antonio Trujillo-Ponce, 2013. "Evaluating the effects of the EU directive proposal for risk-based deposit insurance premiums in Spain," Working Papers 13.01, Universidad Pablo de Olavide, Department of Financial Economics and Accounting (former Department of Business Administration).
  • Handle: RePEc:pab:fiecac:13.01
    as

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    References listed on IDEAS

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    Keywords

    Banking regulation; financial safety net; deposit insurance premiums; deposit insurance system; moral hazard; European banking system;
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