文章基本信息

标题：Explicit Deposit Insurance and Bank Risk-Taking: Does Banking Supervision Matter?
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作者：Raheel Mumtaz ; Imran Abbas Jadoon ; Nadeem Sohail 等
期刊名称：Pakistan Journal of Commerce and Social Sciences
印刷版ISSN：1997-8553
出版年度：2019
卷号：13
期号：3
页码：727-748
语种：English
出版社：Johar Educational Society
摘要：This study explores the influence of supervisory powers and structure of a banking supervisor on the bank’s risk-taking caused by the implementation of explicit deposit insurance (EDI). We explore the data of publically traded 1,936 banks of 96 countries, from the Bank scope during 2002 to 2015. Using the Hierarchical Linear Modeling (HLM), findings revealed that banking supervision reduces the moral hazard of bank’s risk-taking in non-crisis affected countries, either allocated supervisory powers are low or high. Additionally, conferring the greater supervisory authority to banking supervisor strengthened the financial health of banks amongst both crisis and non-crisis affected countries. Furthermore, central bank working as a banking supervisor with greater supervisory powers seemed to mitigate the moral hazard of bank’s risk-taking. While central bank’s low supervisory powers have little or no impact to controlling the bank risk-taking. Hence, the allocation of greater supervisory powers to a central bank heightens the investors and depositors’ confidence in the depository financial institutions.