Banking risks around the world

Luc Laeven

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Banking risks around the world

by Luc Laeven

2000

World Bank, Financial Sector Strategy and Policy Dept.

Description

The degree of risk taking by a bank is related to the size of the gross subsidy that has been extended to the bank by the safety net. This subsidy can be calculated by applying a technique that models deposit insurance as a put option on the bank's assets.

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Banking risks around the world was written by Luc Laeven.

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