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

Pilar Gómez-Fernández-Aguado (), Antonio Partal-Ureña () and Antonio Trujillo-Ponce
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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

No 13.01, Working Papers from Universidad Pablo de Olavide, Department of Financial Economics and Accounting (former Department of Business Administration)

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.

Keywords: Banking regulation; financial safety net; deposit insurance premiums; deposit insurance system; moral hazard; European banking system (search for similar items in EconPapers)
Pages: 28 pages
Date: 2013-05
New Economics Papers: this item is included in nep-acc, nep-ban, nep-cba, nep-eec and nep-ias
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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http://www.upo.es/serv/bib/fiecac/fiecac1301.pdf First version, 2013

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Persistent link: https://EconPapers.repec.org/RePEc:pab:fiecac:13.01

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