Deposit Insurance and the Stock Market: Evidence from Denmark

Previous studies of the relationship between deposit insurance and bank market values have usually been limited to consideration of minor changes in bank regulations but the 1987 initiation of deposit insurance in Denmark permits examination of a potentially major policy shift. We find that the market values of large Danish banks exhibited a modest positive reaction to the announcement of insurance but that small risky banks responded negatively. These results partially contrast with those previously found for the United States an outcome that seems likely to reflect the interaction of deposit insurance with the particular characteristics of the pre-existing Danish regulatory system

Can Banks Placate Knowledgeable Depositors by Offering Higher Interest Rates During a Banking Crisis?

Using a conjoint analysis of 417 finance professionals from six countries, we find no evidence that higher interest rates cause knowledgeable depositors to moderate their withdrawals during a banking crisis. In fact, intended withdrawals are positively correlated with expected interest rate changes. After accounting for endogeneity, this relationship disappears, consistent with the attractiveness of higher returns being offset by increased doubts about bank solvency. The withdrawal decisions of finance professionals are also independent of their personal characteristics, but they appear to place considerable store on deposit insurance generosity and the presence of a formal insurance fund

Disrupting Engineering Education

Traditional engineering education approaches are recognizable around the world – lectures, tutorials, laboratories, some projects. With the emergence of Industry 4.0, the world in which engineers practice is evolving at an ever-increasing rate, combining a greater focus on complex sociotechnical problems with new technologies and increasingly powerful design tools. In general, the engineering curricula have not adapted quickly to this change, but there is a shift in expectations of who and what engineering students should be. Engineering curricula are becoming more flexible, as are the learning environments in which they are implemented. This chapter draws upon the Doblin 10 types of innovation model as a framework to unpack the different kinds of innovation inherent in these emerging forms of disruption. It identifies that innovation is mostly clustered in the configuration and experience of our degrees, rather than the degrees themselves, and shows that effective disruption requires combining several types of innovation to be successful. The chapter further addresses the disruption process itself, highlighting the continuous improvement mindset that is necessary to commence, continue, and sustain disruptive innovation in engineering education. It identifies potential barriers and how these can be overcome, ending with a call to action

The impact of deposit insurance on depositor behavior during a crisis: A conjoint analysis approach

We investigate the effectiveness of initiating deposit insurance at the outset of a banking crisis. Using a conjoint analysis approach that allows us to consider the simultaneous impact of multiple deposit insurance attributes and various counterfactuals, we ask a multinational sample of respondents how they would view hypothetical account profiles following the failure of a large competing bank. Previous experience matters: respondents from countries without explicit deposit insurance exhibit greater withdrawal risk, suggesting that the introduction of deposit insurance during a crisis may be only partially successful in preventing bank runs. They also impose a higher deposit interest rate premium. Having a long-term bank relationship reduces withdrawal risk, as does the absence of co-insurance

Deposit Insurance and the Stock Market: Evidence from Denmark

Previous studies of the relationship between deposit insurance and bank market values have usually been limited to consideration of minor changes in bank regulations but the 1987 initiation of deposit insurance in Denmark permits examination of a potentially major policy shift. We find that the market values of large Danish banks exhibited a modest positive reaction to the announcement of insurance but that small risky banks responded negatively. These results partially contrast with those previously found for the United States an outcome that seems likely to reflect the interaction of deposit insurance with the particular characteristics of the pre-existing Danish regulatory system

Investigation into diagnostic accuracy of common strategies for automated perfusion motion correction

Respiratory motion is a significant obstacle to the use of quantitative perfusion in clinical practice. Increasingly complex motion correction algorithms are being developed to correct for respiratory motion. However, the impact of these improvements on the final diagnosis of ischemic heart disease has not been evaluated. The aim of this study was to compare the performance of four automated correction methods in terms of their impact on diagnostic accuracy. Three strategies for motion correction were used: (1) independent translation correction for all slices, (2) translation correction for the basal slice with transform propagation to the remaining two slices assuming identical motion in the remaining slices, and (3) rigid correction (translation and rotation) for the basal slice. There were no significant differences in diagnostic accuracy between the manual and automatic motion-corrected datasets (p=0.88). The area under the curve values for manual motion correction and automatic motion correction were 0.93 and 0.92, respectively. All of the automated motion correction methods achieved a comparable diagnostic accuracy to manual correction. This suggests that the simplest automated motion correction method (method 2 with translation transform for basal location and transform propagation to the remaining slices) is a sufficiently complex motion correction method for use in quantitative myocardial perfusion