, the OCC interpreted an ambiguously phrased central clause in the National Bank Act of 1863, which sets forth activities …

first. Next, a ‘fundamental' bank valuation model is introduced. Based on sound economics and finance principles, it allows …

) and its inverted U-shape behavior since the mid-1960s. We build a novel model of endogenous growth and bank intermediation … and introduce imperfect bank competition, bank IT adoption and bank entry, and an occupational choice that determines the …

perfectly controlled by the bank. Demand deposit accounts commit the bank to allow holders to withdraw or deposit funds at will …. The resultant uncertainty in deposit flows exposes the bank to the risk of violating regulatory restrictions on leverage …. Deposits create value for the bank except when it is close to hitting the leverage restrictions, because sudden deposit inflows …