"Pricing of Islamic deposit insurance" by Nasim Sabah

Selected Works of Nasim Sabah

Article

Pricing of Islamic deposit insurance

Economics Letters (2019)

Nasim Sabah, Louisiana Tech University
M.Kabir Hassan, University of New Orleans

Link Find in your library

Abstract

We present an Islamic deposit insurance model with both government and private insurers. We show that government insurer provides strong incentives for banks to take excessive systematic risks, and private insurers can eliminate such incentives by charging a higher fee.

Keywords

Islamic deposit insurance,
Banking regulation,
Risk-based premium,
Systematic risk

Disciplines

Finance and Financial Management

Publication Date

Spring May, 2019

DOI

https://doi.org/10.1016/j.econlet.2019.01.013

Citation Information

Nasim Sabah and M.Kabir Hassan. "Pricing of Islamic deposit insurance" Economics Letters Vol. 178 (2019) p. 91 - 94
Available at: http://works.bepress.com/nasim-sabah/1/