Premium for implicit deposit insurance within Russian state banks

2021 ◽  
pp. 89-112
Author(s):  
H. I. Penikas
Keyword(s):  
Deposit Insurance ◽  
Insurance Premium ◽  
State Ownership ◽  
Insurance Pricing ◽  
Russian State ◽  
Deposit Insurance System ◽  
Private Banks ◽  
The Status ◽  
Set Up ◽  
Asset Size

Deposit insurance system (DIS) exists for 17 years in Russia. The major deposit market share belongs to state banks. Ordinary depositors may perceive the status of the bank state ownership to reflect additional deposit safety, even in the excess of the DIS limits. Such a situation is called an “implicit deposit insurance” in the literature. By offering a sort of implicit deposit insurance services state banks might underprice the deposits in excess of DIS limits compared to the private banks. We utilize data from the open sources to measure the scale of the implicit deposit insurance pricing in Russian state banks. We have revealed that Russian state banks pay extra premium all other things being equal. More specifically, the premium is larger in the smallest and the largest state banks, than in the medium-sized ones. Thus, we claim that the implicit insurance premium has a U-shaped form for Russian state banks depending on their asset size. However, Russian state banks underprice all deposits all other things being equal. Additionally, we find out that IRB banks in Russia are more prone to set up higher deposit rates when they take on more risks, than non-IRB banks.

scholarly journals SISTEM PENJAMINAN SIMPANAN (DEPOSIT INSURANCE SYSTEM) PADA INDUSTRI PERBANKAN INDONESIA

2019 ◽  
Vol 1 (2) ◽  
pp. 77-90
Author(s):  
Sjafruddin Sjafruddin
Keyword(s):  
Deposit Insurance ◽  
Insurance Premium ◽  
Bank Risk ◽  
Contagion Effect ◽  
Insurance System ◽  
Guarantee System ◽  
Deposit Insurance System ◽  
The Government ◽  
Public Costs ◽  
The Impact

Banking plays a very important role in the economy along with its function to channel funds from parties who have excess funds (surplus of funds) to those who need funds (lack of funds). If the banking industry does not work well, the economy will become inefficient and the expected economic growth will not be achieved. The risks that are always inherent in the financial and banking sectors, can trigger a crisis at any time and result in a collapse of the country's economy. To overcome the impact of the crisis, the government must pay quite large public costs. This article analyzes several important concepts, namely bank risk and the contagion effect, the operation of a deposit guarantee system that has been implemented in various countries after a financial crisis and how the deposit guarantee program is implemented in Indonesia. The results show that the Deposit Insurance System (DIS) can be implemented through law enforcement system, market discipline, political and economic freedom, low levels of corruption, strict regulations inbanking sector, setting an adequate deposit insurance premium based on the level of bank risk , and selective deposit guarantees. Keywords: Deposit Insurance System,Indonesia Deposit Insurance Corporation, Risk   Abstrak Perbankan memegang peran yang sangat penting dalan perekonoman seiring dengan fungsinya untuk menyalurkan dana dari pihak yang mempunyai kelebihan dana (surplus of funds) kepada pihak-pihak yang membutuhkan dana (lack of funds). Apabila industri perbankan tidak bekerja dengan baik, maka perekonomian menjadi tidak efisien dan pertumbuhan ekonomi yang diharapkan tidak akan tercapai. Risiko yang selalu melekat dalam sektor keuangan dan perbankan, dapat memicu terjadinya krisis sewaktu-waktu dan berakibat lumpuhnya ekonomi negara. Untuk menanggulangi dampak krisis tersebut, pemerintah harus mengeluarkan biaya publik cukup besar. Artikel ini menganalisis beberapa konsep penting, yaitu risiko bank dan  efek penularan (Contagion Effect),penyelenggaraan sistem penjaminan simpanan yang telah di implementasikan berbagai negara setelah terjadi krisis keuangan dan bagaimana implementasi program penjaminan simpanan di Indonesia.Hasilnya menunjukkan bahwaDeposit Insurance System (DIS) dapat diimplementasikan melalui sistem penegakan hukum yang kuat, disiplin pasar, kebebasan politik dan ekonomi, tingkat korupsi yang rendah, regulasi khususnya di bidang perbankan yang kuat, penetapan premi penjaminan simpanan yang memadai dan berdasarkan tingkat risiko bank, serta pemberian jaminan simpanan yang selektif. Kata Kunci:Deposit Insurance System, Lembaga Penjamin Simpanan, Risiko

scholarly journals Research on the Deposit Insurance Pricing Under the Marketing RMB Interest Rate

2016 ◽  
Vol 2 (2) ◽  
pp. 86
Author(s):  
Lingyan Sun ◽  
Tianning Shi ◽  
Panlu Shi
Keyword(s):  
Interest Rate ◽  
Interest Rates ◽  
Deposit Insurance ◽  
Insurance Pricing ◽  
Insurance System ◽  
Functional Representation ◽  
Interest Rate Marketization ◽  
Deposit Insurance System ◽  
The Interest Rate ◽  
The Impact

The deposit insurance pricing is the core issue of deposit insurance system, it determines the success or failure of the deposit insurance system in a way. In the current deposit insurance pricing methods, we treat the interest rates as a constant. With the interest rate marketization in China, the deposit insurance pricing methods have also changed accordingly. In this paper, we will give a functional representation of the impact of RMB interest rate marketization on interest rate by fitting the coefficients of the cubic function. Then we will use the data of 2013 to prove it. For the points that do not conform to this rule, we also have some explanations related to the major economic events at that time.

scholarly journals Determination of Deposit Insurance Premium (LPS): Merton’s Option Theory with Co-Insurance Consideration

2021 ◽  
Vol 1 (2) ◽  
pp. 44-49
Author(s):  
Naomi Pandiangan
Keyword(s):  
Moral Hazard ◽  
Deposit Insurance ◽  
Insurance Premium ◽  
Deposit Insurance System ◽  
Black Scholes ◽  
Option Theory ◽  
Almost All ◽  
Excessive Risk Taking ◽  
Excessive Risk

Indonesia is a developing country that implements a deposit insurance system. Deposit Insurance Agency or LPS is an Indonesian deposit insurance established in 2004, which is Indonesian still unfamiliar with LPS, both among researchers, and the general public. Almost all deposit insurance in every country including Indonesia has the same problem, the problem is how to calculate premiums and how to avoid moral hazard by banks, therefore in this study will discuss how to determine premiums from the development of Black-Scholes option theory (1973) conducted by Merton (1977). To prevent banks from engaging in moral hazard, co-insurance is considered in this study, which is banks take the risk to anticipate 'excessive risk-taking' behavior. that occurs if the value of the asset is smaller than value of the deposit after joining the insurance program. So it is expected to encourage banks to beware.

"MOTHER, SHOWING NO SPECIAL AFFECTION FOR YOU, WRITES TO YOU VERY FRIENDLY". COUNT V.A. MUSIN-PUSHKIN'S PRE-WEDDING LETTERS TO HIS BRIDE

2020 ◽  
pp. 59-75
Author(s):  
Yuliya V. Kim ◽  
Keyword(s):  
Everyday Life ◽  
Family Life ◽  
Married Couple ◽  
State Archive ◽  
Human Relations ◽  
Russian State ◽  
The Family ◽  
The Status ◽  
Traditional Patterns ◽  
Power Hierarchy

The article presents two letters from V.A. Musin-Pushkin which he wrote to his bride shortly before the wedding in 1828 (the letters are kept in the Russian State Archive of Ancient Acts). The text of the letters reflects the context of the time and everyday life, the system of views and the peculiarities of the worldview of a young aristocrat, the specific features of intra-family interaction in the field of feelings, marriage, human relations which inevitably turn out to be associated with the concepts of the family honor, family duty, the need to preserve the status of a noble family. The author traces how the power hierarchy is manifested at the level of relations within a close circle of relatives, as well as how traditional patterns are combined with new elements. Vladimir Alekseevich Musin-Pushkin, the youngest son of the archaeographer Count A.I. Musin-Pushkin, was arrested in connection with the case of the Decembrists, transferred from the Guards to the army and exiled to serve in Finland, where he met his future wife, Emilia Karlovna Shernval von Wallen. The article provides details of the family life of this married couple, as well as private facts from the biography of some other members of the Musin-Pushkin family.

Syed Nawab Haider Naqvi, Mahmood Hasan Khan and M. Ghaffu Otaudhry (edt.). LaJld Reforms in Pakistan, A Historical Perspective. Islamabad: Pakistan Institute of Development Economics 1987. viii+216 pp.Price: Rs 220 (USS 35) for hardcover; Rs 140.00 (USS 20) for soft-cover.

1988 ◽  
Vol 27 (2) ◽  
pp. 217-218
Author(s):  
Luther Tweeten
Keyword(s):  
Land Tenure ◽  
Land Reform ◽  
State Ownership ◽  
Land Reforms ◽  
Policy Makers ◽  
Rural Pakistan ◽  
The Status ◽  
Land Tenure System ◽  
Ownership Of Land ◽  
High Degree

The authors describe how Pakistan has grappled with land reform, surely one of the most intractable and divisive issues facing agriculture anywhere. The land-tenure system at independence in 1947 included a high degree of land ownership concentration, absentee landlordism, insecurity of tenant tenure, and excessive rent. Land reform since 1947 focused on imposition of ceilings on landholding, distribution of land to landless tenants and small owners, and readjustments of contracts to improve the position of the tenant. These reformist measures have removed some but by no means all of the undesirable characteristics of the system. The authors list as well as present a critique of the reports of five official committees and commissions on land reform. The reports highlight the conflicts and ideologies of the reformers. The predominant ideal of the land reformers is a system of peasant proprietorship although some reformers favoured other systems such as communal farming and state ownership of land, and still others favoured cash rents over share rents. More pragmatic reformers recognized that tenancy is likely to be with Pakistan for the foreseeable future and that the batai (sharecropping) arrangement is the most workable system. According to the editors, the batai system can work to the advantage of landlord and tenant if the ceilings on landholding can be sufficiently lowered (and enforced), the security of the tenant is ensured, and the tenant has recourse to the courts for adjudication of disputes with landlords. Many policy-makers in Pakistan have come to accept that position but intervention by the State to realize the ideal has been slow. The editors conclude that" ... the end result of these land reforms is that they have not succeeded in significantly changing the status quo in rural Pakistan" (p. 29).

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