Are Banks Risk-Averse?

Yasuo Nishiyama ()
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Yasuo Nishiyama: {ennsylvania State University - Hazleton

Eastern Economic Journal, 2007, vol. 33, issue 4, 471-490

Abstract: The paper investigates, and estimates, banks’ risk aversion that is factored into the spread between the interest rate on time deposits and the interest rate on non-time deposits. The estimation results indicate that the relative risk aversion coefficient estimates of individual banks fall between 0 and 1, but mostly around 0.2, thereby indicating that banks are risk-averse but close to being risk-neutral.

Keywords: Banks; Risk Aversion; Deposit Rate Rigidity (search for similar items in EconPapers)
Date: 2007
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Citations: View citations in EconPapers (7)

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Persistent link: https://EconPapers.repec.org/RePEc:eej:eeconj:v:33:y:2007:i:4:p:471-490

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