This paper reviews the theoretical literature on bank capital regulation and analyzes some of
the approaches to redesigning the 1988 Basel Accord on capital standards. The paper starts …

A fixed-rate deposit insurance system provides a moral hazard for excessive risk taking and
is not viable absent regulation. Although the deposit insurance system appears to have …

Motivated by public policy debates about bank consolidation and conflicting theoretical
predictions about the relationship between bank concentration, bank competition and …

In recent years, two important literatures on the theory of banking firms have developed. One
examines the economic functions of banks in environments in which agents are …

This paper examines theoretically the effects of more stringent capital regulation on bank
asset portfolio risk. The analysis shows that, for a value-maximizing bank, incentives to …

I study the consequences of capital regulations on the portfolio choices of commercial
banks. Elaborating on previous work by Kareken and Wallace (1978), Koehn and …

This paper presents a methodology for arriving at empirical estimates of deposit insurance
premiums from market data by using isomorphic relationships between equity and a call …

Building an unbalanced panel of United States (US) bank holding company (BHC) and
commercial bank balance-sheet data from 1986 to 2008, we examine the relationship …

The mean-variance framework has been used to analyze the effects of bank capital
regulation on the asset and bankruptcy risk of insured, utility-maximizing banks. This …

This paper seeks to explain the combination of explicit and implicit pricing for deposit
insurance employed by the FDIC. Essentially, the FDIC sells two products—insurance and …