Reciprocal deposits and incremental bank risk |
| |
| Authors: | Sherrill Shaffer |
| |
| Institution: | 1. Economics and Finance, University of Wyoming, Laramie, United States and CAMAshaffer@uwyo.edu |
| |
| Abstract: | Even after controlling for other observable factors, reciprocal deposits are associated with higher bank risk as measured by the probability of failure and the Z-score. These results are consistent with the moral hazard hypothesis and reject the risk substitution hypothesis. |
| |
| Keywords: | reciprocal deposits bank risk logit failure Z-score |
|
|
