Reciprocal brokered deposits and bank risk

Vol: 
15/2010
Author name: 
Shaffer S
Year: 
2010
Month: 
April
Abstract: 

Economic theory predicts that reciprocal brokered deposits, by facilitating an extension of deposit insurance coverage, may exacerbate moral hazard and reduce market discipline for banks, permitting them to take more risk in various dimensions. Using a newly available dataset, this note explores empirical evidence related to that hypothesis.

Publication file: 

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