caa a22 4500 463187504 CHVBK 20180406164858.0 cr unu---uuuuu 170326e20070801xx s 000 0 eng 10.1007/s11156-007-0029-8 doi (NATIONALLICENCE)springer-10.1007/s11156-007-0029-8 Premium setting and bank behavior in a voluntary deposit insurance scheme [Elektronische Daten] [Ting-Fang Chiang, E-Ching Wu, Min-Teh Yu] This study analyzes the effect of premium rates on banks' incentives to join a deposit insurance scheme and their incentives to invest in risky projects under a voluntary deposit insurance scheme. We find that in order to maximize social welfare, the insurance agency must either set the premium rate to be low so as to attract all banks to join the insurance scheme, or not to have the deposit insurance at all. However, the low premium rate in the voluntary scheme does not balance the budget of the deposit insurance. We also show that in the compulsory deposit insurance scheme, however, it is possible to impose an optimal premium rate that can balance the insurance agency's budget and achieve the highest social welfare. The results also present the dominance of the compulsory scheme over the voluntary scheme in terms of maximizing social welfare and balancing the budget. Springer Science+Business Media, LLC, 2007 Deposit insurance nationallicence Insurance premium nationallicence Social welfare nationallicence Compulsory nationallicence Voluntary nationallicence Moral hazard nationallicence Chiang Ting-Fang Department of International Business, Yuan Ze University, 320, Jung-Li, Taiwan aut Wu E-Ching Department of Finance, Providence University, 43301, Taichung, Taiwan aut Yu Min-Teh Department of Finance, Providence University, 43301, Taichung, Taiwan aut Review of Quantitative Finance and Accounting Springer US; http://www.springer-ny.com 29/2(2007-08-01), 205-222 0924-865X 29:2<205 2007 29 11156 https://doi.org/10.1007/s11156-007-0029-8 text/html Onlinezugriff via DOI 1 research-article jats NATIONALLICENCE 856 40 https://doi.org/10.1007/s11156-007-0029-8 text/html Onlinezugriff via DOI NATIONALLICENCE 700 1- Chiang Ting-Fang Department of International Business, Yuan Ze University, 320, Jung-Li, Taiwan aut NATIONALLICENCE 700 1- Wu E-Ching Department of Finance, Providence University, 43301, Taichung, Taiwan aut NATIONALLICENCE 700 1- Yu Min-Teh Department of Finance, Providence University, 43301, Taichung, Taiwan aut NATIONALLICENCE 773 0- Review of Quantitative Finance and Accounting Springer US; http://www.springer-ny.com 29/2(2007-08-01), 205-222 0924-865X 29:2<205 2007 29 11156 Metadata rights reserved Springer special CC-BY-NC licence nationallicence BK010053 XK010053 XK010000 NATIONALLICENCE NATIONALLICENCE NL-springer