University of Illinois at Urbana-Champaign
Essays on regulatory control of deposit insurance and dual trading
Abstract
dc:descriptionEssay 1 extends the existing theoretical framework to incorporate a bank's charter value and analyze directly its effect on the pricing of deposit insurance. It derives values of deposit insurance with both deterministic and stochastic charter values. It is shown that significant charter value can be a main cost to exploit the FDIC's guarantee at a given level of regulatory control. Consequently, studies that fail to allow for charter value tend to understate the costs of a bank's risk-shifting, and tend to overstate the true obligation of the FDIC for an insolvent bank. In the case of stochastic charter value, the correlation between a bank's tangible assets and its charter value is an important factor in determining its fair insurance premium.
Degree
thesis:*- Name thesis:degree_name
- Ph.D.
- Level thesis:degree_level
- Dissertation
- Discipline thesis:degree_discipline
- Finance
- Grantor
- University of Illinois at Urbana-Champaign
- Year dc:date
- 2011
Author and committee
dc:creator, dc:contributor.*- Author dc:creator
-
- Wu, Lifan
- Contributors dc:contributor
-
- Bryan, William R.
Subjects
dc:subject × 2Rights
dc:rights- Statement dc:rights
-
- Copyright 1994 Wu, Lifan
- Language dc:language
- eng
Identifiers
dc:identifier.*- Identifier
-
AAI9512601
(UMI)AAI9512601 - OAI identifier oai:identifier
- oai:www.ideals.illinois.edu:2142/19334