Economic Analysis of Financial Regulation: Lecture 3.3

Regulation is like ______ in cooking.

The free rider problem is ______ by regulation.

Regulation creates another ______ info problem.

Depositers know ______ about the types/quality/risk of loans a bank makes.

Bank ______ happen to good and bad banks.

The ______ in the details of regulation is a major concern.

Bank failures and bank panics can result in a lower level of financial ______.

The ______ provides protection to prevent runs/panics by providing insurance.

In the US, the FDIC was established in ______.

As of present, deposit insurance is ______ per depositor.

In the Philippines, deposit insurance insures up to ______ pesos per depositor.

Under the Payoff Method, depositors get ______% of each dollar for accounts greater than 250,000.

Merger is a deal in which one bank assumes all ______ and equity of another bank.

The FDIC provides subsidized ______ to help banks in trouble.

The ______ effect of a purchase and assumption is that insurance covers all liabilities and deposits.

The FDIC entered into a loss-share transaction with First Citizens on the commercial ______ of former SVBB.

Tech companies ran to get their uninsured ______ out of the failed bank.

General Bank and Trust Company was acquired by ______ Bank (Lucio Tan) in 1976.

Banks are not allowed to fail because of the ______ of banking crises.

World Bank Research suggests that deposit insurance is associated with ______ banking sector stability.

Deposit insurance gives incentives for banks to increase ______ activities.

The absence of ______ of law is a characteristic of a weak institutional environment.

Government safety net creates a problem of ______ because depositors do not impose discipline.

The risk of losing their money is reduced through ______ and/or safety net

Financial institutions have an incentive to take on greater ______

Risk-lovers find banking more attractive – a fall back ______

Too big to ______ is a drawback of government safety net

FDIC guaranteed depositors up to $______;

Financial consolidation leads to bigger more complex ______ organizations