Reint Gropp - Latest

• Flight from Safety: How a Change to the Deposit Insurance Limit Affects Households’ Portfolio Allocation

  Staff Working Paper 2019-29 H. Evren Damar, Reint Gropp, Adi Mordel

  Deposit insurance protects depositors from failing banks, thus making insured deposits risk-free. When a deposit insurance limit is increased, some deposits that previously were uninsured become insured, thereby increasing the share of risk-free assets in households’ portfolios. This increase cannot simply be undone by households, because to invest in uninsured deposits, a household must first invest in insured deposits up to the limit. This basic insight is the starting point of the analysis in this paper.

  Content Type(s): Staff research, Staff working papers Topic(s): Financial institutions, Financial system regulation and policies JEL Code(s): D, D1, D14, G, G2, G21, G28, L, L5, L51

• Banks’ Financial Distress, Lending Supply and Consumption Expenditure

  Staff Working Paper 2014-7 H. Evren Damar, Reint Gropp, Adi Mordel

  The paper employs a unique identification strategy that links survey data on household consumption expenditure to bank-level data in order to estimate the effects of bank financial distress on consumer credit and consumption expenditures.

  Content Type(s): Staff research, Staff working papers Topic(s): Credit and credit aggregates, Domestic demand and components, Financial institutions JEL Code(s): E, E2, E21, E4, E44, G, G0, G01, G2, G21

• The Ex-Ante Versus Ex-Post Effect of Public Guarantees

  Staff Working Paper 2012-22 H. Evren Damar, Reint Gropp, Adi Mordel

  In October 2006, Dominion Bond Rating Service (DBRS) introduced new ratings for banks that account for the potential of government support. The rating changes are not a reflection of any changes in the respective banks’ credit fundamentals.

  Content Type(s): Staff research, Staff working papers Topic(s): Financial institutions, Financial stability, Financial system regulation and policies JEL Code(s): G, G2, G21, G28, G3, G32