The changing role of banks and the changing value of deposit guarantees

Ivilina Popova, Peter H. Ritchken and James B. Thompson
Authors registered in the RePEc Author Service: James B. Thomson

No 9502, Working Papers (Old Series) from Federal Reserve Bank of Cleveland

Abstract: Using a model for pricing deposit guarantees that treats the bank's investments as a portfolio of default-free bonds and risky loans, the authors push back uncertainty to the level of the borrowing firm and thus are able to explore how factors like firm leverage, loan maturity, and correlation effects between the firm's assets and interest rates affect the value of deposit guarantees.

Keywords: Deposit insurance; Bank loans (search for similar items in EconPapers)
Date: 1995
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Citations: View citations in EconPapers (2)

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