Results 1 - 1 of 1 for PRIME [Author: Paul Wilson]
Can Deposit Insurance Increase the Risk of Bank Failure? Some Historical Evidence - Review
Many economists have argued that unless premiums are risk-based, deposit insurance will encourage banks to take greater risks than they otherwise would, thereby increasing the likelihood of failure. Because virtually all banks today are insured, isolating the effects of deposit insurance from other regulatory and economic conditions that affect bank performance is problematic.
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