Working Paper
Optimal bank portfolio choice under fixed-rate deposit insurance
Abstract: An analysis of the investment decisions of a bank whose deposits are fully insured under fixed-rate insurance, showing how banks dynamically adjust their investment portfolios in response to market information and how this flexibility affects both investment decisions and the fair cost of deposit insurance.
Keywords: Deposit insurance; Bank investments;
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Bibliographic Information
Provider: Federal Reserve Bank of Cleveland
Part of Series: Working Papers (Old Series)
Publication Date: 1991
Number: 9111