This allows banks to compete both in the rate they pay and in the extent of insurance coverage that they provide to depositors
, since both aspects of the deposit contract affect depositor
While bank failures were frequent, depositor
losses were minor.
The SAIF institution can be funded from nondeposit sources, while its depositors
are encouraged to shift funds to the BIF institution.
On occasion, minute books and correspondence files provide more detailed information about individual depositors
Dowd claims that the resources left in the bank, after all deposit payouts have been made and assuming that each depositor
asks for the withdrawal intended for his type, would be KR + [t + (1 - t)R] - [t[r.
2 makes his decision, depositor
1 updates his belief (although he has no chance to change his decision) in a similar way, as follows:
Reductions in depositor
(or before that, noteholder) liquidity when banks fail have been identified as a major costly problem almost from the very first bank failure.
Given this tradeoff, it is possible to solve for the optimal time for the distribution of payments on depositor
claims on a failed bank.
SANTA CLARITA - Pasadena-based Community Bank, with a branch in Santa Clarita, is taking advantage of a new federal program that enables depositors
to obtain federal insurance on amounts of up to $5 million - without having to do any fancy footwork.
When customers deposited money with the bank and the bank issued CDs, debtor-creditor relationships were created between the bank and the depositors
In the case of a minor depositor
, the SPA must be executed by the parent.
The new depositor
, which replaces a two-component model, can make sophisticated confectionery with features such as stripes, swirls, centre-fillings and layers.