the monetary policy and financial regulation and supervision perspectives. In the preceding SUERF Study (2013/2), the …

the monetary policy and financial regulation and supervision perspectives. In the preceding SUERF Study (2013/2), the …

constrained efficient when supplemented with the same government liquidity regulation that is required to make a banking system …I revisit the Diamond-Dybvig model of liquidity insurance in the presence of hidden trades. The key result is that in … this environment deposit-taking banks are not necessary for the efficient provision of liquidity. Mutual funds are …

We investigate two competing explanations for commercial bank distress during financial crises: liquidity shortages and … solvency concerns. If liquidity shortages cause distress, a lender of last resort can help by providing funds to banks having … banks with existing solvency problems, then liquidity provision may not spur lending. Our analysis of commercial banks shows …

We investigate liquidity shocks and shocks to fundamentals during financial crises at commercial banks, investment … banks, and hedge funds. Liquidity shock amplification models assume that widespread funding problems cause fire sales. We …

premature to conclude that 'Too Big to Fail" has been solved, but macro-prudential regulation is now much more effective and …

generates bank equity and credit supply volatility. Then, a DSGE model with key financial frictions and a banking sector is … capital regulation, (iii) they mainly operate through their cyclical component, ensuring that long-run dividend payouts remain …

This paper studies leverage regulation and monetary policy when equity investors and/or creditors have distorted … beliefs relative to a planner. We characterize how the optimal leverage regulation responds to arbitrary changes in investors …' and creditors' beliefs and relate our results to practical scenarios. We show that the optimal regulation depends on the …

There is a longstanding debate about whether banking panics and other financial crises always have fundamental causes … invariant to the underlying cause of banking panics in some situations. In our model, the anticipation of being bailed out in … correct this distortion are compared: restricting policymakers from engaging in bailouts, and allowing bailouts but taxing the …