Study of banking sector design from risk perspective to minimise social costs
by Sameer Kumar
International Journal of Risk Assessment and Management (IJRAM), Vol. 9, No. 1/2, 2008

Abstract: A comprehensive review of the US banking sector design is currently underway with debates among bankers, trade, consumer groups and regulatory agencies on pricing, The Federal Deposit Insurance Corporation (FDIC) bank insurance fund maintenance and coverage levels for new deposit insurance initiative. A macro design framework is proposed as an input to planned improvements. The objective of the proposed conceptual banking sector model is to seek a design where each bank self-monitors its own risk level and controlled by the market forces/discipline. The agency providing risk-based depositors' insurance should break even, at minimal, and the stockholders should make an adequate rate of return. In this way, the need for regulations is decreased, the banking sector becomes more stable and the social cost is decreased.

Online publication date: Mon, 07-Jul-2008

The full text of this article is only available to individual subscribers or to users at subscribing institutions.

 
Existing subscribers:
Go to Inderscience Online Journals to access the Full Text of this article.

Pay per view:
If you are not a subscriber and you just want to read the full contents of this article, buy online access here.

Complimentary Subscribers, Editors or Members of the Editorial Board of the International Journal of Risk Assessment and Management (IJRAM):
Login with your Inderscience username and password:

Username:        Password:          Forgotten your password?

Want to subscribe?
A subscription gives you complete access to all articles in the current issue, as well as to all articles in the previous three years (where applicable). See our Orders page to subscribe.

If you still need assistance, please email subs@inderscience.com