A Study of Mutual Insurance for Bank Deposits

20 Pages Posted: 8 Feb 2017

See all articles by Carole Bernard

Carole Bernard

Grenoble Ecole de Management; Vrije Universiteit Brussel (VUB)

Olivier Le Courtois

EM Lyon (Ecole de Management de Lyon) - Department of Economics, Finance, Control

Francois Quittard-Pinon

EMLYON Business School

Date Written: 2005

Abstract

This article displays a study of the mutual insurance of bank deposits. A system where deposits are first insured by a consortium then by the Government is envisaged. We wish to compute the fair premia due to both the consortium and the Government. Various types of covenants aiming at making banks reduce their risks are detailed. These provisions can be, as is the case in Chapter 11, of a Parisian type. This means that surveillance is based on the paths followed by the assets or leverage. We compare these various types of covenants and conclude on the proposal for new regulatory provisions.

JEL Classification: G13, G21

Suggested Citation

Bernard, Carole and Le Courtois, Olivier Arnaud and Quittard-Pinon, Francois, A Study of Mutual Insurance for Bank Deposits (2005). Geneva Risk and Insurance Review, Vol. 30, No. 2, 2005. Available at SSRN: https://ssrn.com/abstract=2912831

Carole Bernard

Grenoble Ecole de Management ( email )

12, rue Pierre Sémard
Grenoble Cedex, 38003
France

Vrije Universiteit Brussel (VUB) ( email )

Pleinlaan 2
http://www.vub.ac.be/
Brussels, 1050
Belgium

Olivier Arnaud Le Courtois (Contact Author)

EM Lyon (Ecole de Management de Lyon) - Department of Economics, Finance, Control ( email )

23, av. Guy de Collongue
69134 Ecully Cedex
France

Francois Quittard-Pinon

EMLYON Business School ( email )

23, Avenue Guy de Collongue
69134, Ecully
France

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