加拿大金融保险留学essay [12]
论文作者:英语论文论文属性:短文 essay登出时间:2014-12-07编辑:yangcheng点击率:23364
论文字数:7622论文编号:org201412042311298650语种:英语 English地区:加拿大价格:免费论文
关键词:加拿大留学论文金融保险Insurance Financial过度风险
摘要:本文是一篇加拿大金融保险留学essay,存款保险制度在促进经济金融的稳定中发挥了非常重要的作用。在全球范围内大多数发展中国家有存款担保制度。
instability and to prevent bank panics in the liquidity insurance model are to ensure the banks have sufficient liquid assets to meet the claims of all the depositors at time one. The bank can not have hundred percent liquid reserve, all the banks can only have a fraction of liquid asset because the return from illiquid investment is higher than holding liquid assets.#p#分页标题#e#
Under narrow banking system all the assets are kept liquid so it can meet the claims of the depositors at any period of time. It does not engage in maturity transformation of assets, it makes the investments in bonds. The welfare obtained from the narrow banking is dominant by the normal banks and it is also dominated by autarkic situation (absence of trade between the agents) this model show narrow banking as a very restrictive solution. The narrow banking solution can not provide the social welfare level that is been provided by the normal bank. (Wallace 1988, 1996).
Lender of last resort is essential to the financial institutions in providing emergency support and liquidity. The central banks in the country act as a lender of last resort. The emergency facility may not always be guaranteed to the commercial banks. It is a decision made by the supervisory authority at the time of bank panics. This facility prevents the banks from failing and provides liquidity to meet the withdrawal of the depositors. The Bank of England played a very effective role during Northern Rock crisis.
The model show insuring the depositor is an effective solution to prevent the problem of bank run. The deposit insurance scheme is financed by insurance premiums, paid by bank or through
taxation. The deposit insurance in this model means, even if large portion of consumer go for early withdrawal, it is not optimal for the other consumers to withdraw early because they are been guaranteed by the insurance scheme. Deposit insurance system is very effective in the financial system to stop the bank runs and maintain financial stability. When the deposits are formally guaranteed then there will not be any reason for the consumers to run on the bank. Depositors insurance system dominants all the other solutions in preventing bank runs. Many studies have concluded deposit insurance as a dominant solution in preventing the bank runs.
Northern Rock crisis clearly shows the deposit insurance system failed to prevent bank run. I will be studying the reason for the failure in the chapter below.
3. REASONS FOR THE FAILURE OF DEPOSIT INSURANCE
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