Compare to other firms, banks are special in three ways. First, most banks are insured by deposit insurance. Second, banking industry is highly regulated. Third, banks are financial intermediary. To attract deposits is one of a bank’s main functions, and deposits compose the most part of a bank’s debt. Among the various regulations, minimum capital requirements play an important role, which req...

The banking sectors in several Central and Eastern European countries are characterized by a two-tier structure, in which a few large banks dominate the deposit market but are very inactive in the loan market with private borrowers, while many small banks engage in lending but have only small shares of the deposit market. The large banks act as net lenders in the interbank market, while small b...

Using monthly balance-sheet data of all major German credit banks, we analyze deposit withdrawals and bank failures in the German banking and currency crisis of 1931. We Þnd that deposit withdrawals were driven by the run on the currency, but were also related to banks’ liquidity positions; that branch banks were no more stable than unit banks; and that large banks were privileged, being bailed...

Calculating total cast of bank resources procurement methods which include current -free loan deposit, saving interest-free loan deposit, regular and net short-term investment deposit, long-term investment deposit and surety bond cash deposit and presenting their optimal integration require precise scientific studies. Hence, this study is an attempt to know which methods are the best optimal in...

In this paper I add heterogeneous agents and risk-sharing opportunities to a coordination game which represents deposit withdrawals from the banking system. I find that heterogeneity in risk aversion within the population amplifies the effect of the business cycle on the probability of a bank run. In particular, risk-sharing enhances the likelihood of bank runs during bad times. The novel insig...

I n a modern economy, a large fraction of payments for goods and services involve the services of one or more banks. The provision of payment services is, in fact, one of the distinguishing characteristics of banks. A bank-intermediated payment instrument, such as a check, typically communicates instructions to the buyer’s bank to make payment to the seller or the seller’s bank. Often, then, we...

Development of E-banking has modified the structure of banking business and banking performance, efficiency, risk and challenges which have also been articulately recognized based on the international best practices. E-banking brazenly expedites and streamlines financial transactions via enhancing technology and expanding the bank services in comparison with conventional banking. Accordingly, o...

This paper attempts to provide an understanding with respect to Islamic deposit facilities in Malaysia. Our illuminations are centered on current accounts, savings accounts and investment accounts. A brief note on negotiable Islamic certificates of deposit (NICD) is also provided. These deposit products are explained in terms of their definitions, features and return calculations. On the same n...

T he U.S. banking system has consolidated in recent years, and the shares of total banking system assets and deposits held by the very largest banking organizations have increased markedly. The number of commercial banks reached its post-World War II peak of 14,483 banks in 1984. By year-end 2012, the number of commercial banks had declined to 6,096. In 2001, the five largest commercial banks h...

The aim of this article is to determine the level and the nature of the quantitative and qualitative factors' influences on development of the banking sector and their influence on economic growth in South-East European countries (SEE). We used a OLS model with panel-corrected standard errors (PCSE) and panel data from six transition countries for the period 1999-2006. We measure the qualitativ...