Search or add a thesis

Advanced Search (Beta)
Home > Effect of Explicit Deposit Insurance on Moral Hazard of Banks Risk-Taking: in Cross Section of Supervision

Effect of Explicit Deposit Insurance on Moral Hazard of Banks Risk-Taking: in Cross Section of Supervision

Thesis Info

Access Option

External Link

Author

Mumtaz, Raheel

Program

PhD

Institute

COMSATS University Islamabad

City

Islamabad

Province

Islamabad.

Country

Pakistan

Thesis Completing Year

2019

Thesis Completion Status

Completed

Subject

Management Sciences

Language

English

Link

http://prr.hec.gov.pk/jspui/bitstream/123456789/12470/1/Final%20Thesis%20%28FA11-PMS-002-ISB%29.pdf

Added

2021-02-17 19:49:13

Modified

2024-03-24 20:25:49

ARI ID

1676724655047

Similar


The adoption of explicit deposit insurance increases the moral hazard of bank’s risktaking triggered by the reduction in depositors’ discipline. In the light of economic and contract theories, the main objectives of this study are; to analyze whether the implementation of risk-adjusted deposit insurance premium shrinks the bank’s risktaking, to examine that the allocation of appropriate supervisory powers and suitable supervision structure to a banking supervisor reduces the bank’s risk-taking, to scrutinize whether to allocate the additional supervisory power to a deposit insurer in the presence of banking supervisor which more likely to decreases the moral hazard of bank’s risk-taking. This study comprises the secondary data of publically traded deposit-taking banks of 125 countries from 2002 to 2014 period. In this scenario, the bank-level data is collected from the Bankscope database while country-level data is collected from the surveys of World Bank and global financial development database. This study uses the Hierarchical Linear Modelling (HLM) technique which takes into account the nested effect of the dataset. The findings reveal that enactment of risk-adjusted deposit insurance premium decreases the moral hazard of bank’s risk-taking initiated by the adoption of explicit deposit insurance. Though, this effect is higher for the small banks as compared to large banks. Furthermore, the allocation of greater supervisory powers to a banking supervisor, reduces the moral hazard of bank’s risk-taking in non-crisis affected countries and uplifts the financial health of banks in both crisis and non-crisis affected countries. Moreover, a central bank with greater supervisory powers, appears to mitigate the moral hazard of bank’s risk-taking adopted by explicit deposit insurance. Whereas, the allocation of low supervisory powers to a central bank has a little or no impact on the bank’s risk-taking. The allocation of supervisory powers to a deposit insurer decreases the moral hazard of bank’s risk-taking and enriches the bank’s soundness in non-crisis effected countries. Furthermore, the allocation of additional supervisory powers to a deposit insurer, appears as the additional force to mitigate the moral hazard of bank’s risk-taking in the presence of a banking supervisor. However, this effect is more significant in non-crisisaffected countries. Therefore, the regulatory institutes can reform their strategies and surveillance policies under the verdicts of this study, as it intensifies the depositors and investors’ confidence in the banking system around the globe.
Loading...
Loading...

Similar Books

Loading...

Similar Chapters

Loading...

Similar News

Loading...

Similar Articles

Loading...

Similar Article Headings

Loading...

104. Al-Humazah/The Slanderer

104. Al-Humazah/The Slanderer

I/We begin by the Blessed Name of Allah

The Immensely Merciful to all, The Infinitely Compassionate to everyone.

104:01
a. Woe to every slanderer and backbiter,

104:02
a. as also the one who amasses wealth without spending a part of it on charity, and keeps
adding and counting it over and over again,

104:03
a. thinking - in his ignorance - that his wealth will make him live forever.

104:04
a. Never!
b. It is not like what he thinks.
c. On the contrary, he will certainly be flung into the Crushing Fire - that which breaks its inmates to pieces.

104:05
a. And what may enable you to comprehend the Crushing Fire?

104:06
a. The Crushing Fire is Allah’s Fire, fiercely set ablaze,

104:07
a. which will leap up and penetrate deep into sinful peoples’ hearts and shall burn within as without.

104:08
a. It will definitely be closing upon them from all directions,

104:09
a. in towering and extending columns of flames.

تمثیل الانبیاء (انبیا پر فلم سازی) اور اسلامی شریعت کا نقطہ نظر

All the Prophets have been respectable in the scriptures of all the world religioins. They were sent to this world for a significant cause and remained model role for human beings, especially in Islamic point of view they have been a part of belief; and any disgrace towards them is regarded an act of pegamism. In modern ages the concept of presenting the lives of the prophets in film stories is developing though it is a source of knowledge but for many reasons it held a sign of interrogation wich has been discussed in this Article.

The Noether Symmetries and Invariants of Some Partial Differential Equations

A connection is obtained between isometries and Noether symmetries for the area-minimizing La- grangian. It is shown that the Lie algebra of Noether symmetries for the Lagrangian minimizing an (n − 1)-area enclosing a constant n-volume in a Euclidean space is so(n) ⊕s Rn and in a space of constant curvature the Lie algebra is so(n). Here for the non-compact space this has to be taken in the sense of being cut at a fixed boundary that respects the symmetry of the space and is not a volume enclosing hypersurface otherwise. Further if the space has one section of constant cur- vature of dimension n1 , another of n2 , etc. to nk and one of zero curvature of dimension m, with n≥ k j=1 nj + m (as some of the sections may have no symmetry), then the Lie algebra of Noether symmetries is ⊕k so(nj + 1) ⊕ (so(m) ⊕s Rm ). j=1 For a subclass of the general class of linear hyperbolic systems, obtainable from complex base hy- perbolic equation, semi-invariant and joint invariants are investigate by complex and real symmetry analysis. A comparison of all the invariants derived by complex and real methods is presented here which shows that the complex procedure provides a few invariants different from those extracted by real symmetry analysis for a linear hyperbolic system. The equations for the classification of symmetries of the scalar linear elliptic equation are obtained in terms of Cotton’s invariants. New joint differential invariants of the scalar linear elliptic equations in two independent variables are derived, in terms of Cotton’s invariants by application of the infinitesimal method. Joint differential invariants of the scalar linear elliptic equation are also derived from the bases of the joint differential invariants of the scalar linear hyperbolic equation under the application of the complex linear transformation. We also find a basis of joint differential invariants for such equations by utilization of the operators of invariant differentiation. The other invariants are functions of the bases elements and their invariant derivatives. Cotton-type invariants for a subclass of a system of two linear elliptic equations, obtainable from a complex base linear elliptic equation, are derived both by splitting the corresponding complex Cotton invariants of the base complex equation and from the Laplace-type invariants of the system of linear hyperbolic equations equivalent to the system of linear elliptic equations via linear complex transformations of the independent variables. It is shown that Cotton-type invariants derived from these two approaches are identical. Furthermore, Cotton-type and joint invariants for a general system of two linear elliptic equations are also obtained from the Laplace-type and joint invariants for a system of two linear hyperbolic equations equivalent to the system of linear elliptic equations by complex changes of the independent variables.