Optimal Bank Interest Margin under Capital Regulation and Deposit Insurance
研究资本监管和存款保险如何影响银行最优利差，发现提高资本要求或存款保险费率会降低利差，贷款损失风险增加也会使利差缩小。
This paper examines the relationships among capital regulation, deposit insurance, and the optimal bank interest margin. In a model where loan losses are the source of uncertainty, changes in capital regulation or deposit insurance premiums have direct effects on the bank's interest margin. An increase in bank capital requirement or in deposit insurance premiums results in a reduced interest margin under nonincreasing risk aversion. Comparative static analysis also explores the relation between asset quality and interest margin. It is shown that a mean-preserving spread of the distribution of loan losses results in a reduced margin.