We develop a dynamic model to assess the effects of liquidity and leverage requirements on banks' insolvency risk. The … model features endogenous capital structure, liquid asset holdings, payout, and default decisions. In the model, banks face … short-run; leverage requirements reduce default risk but may significantly reduce bank value; mispriced deposit insurance …

costs across the euro area. The example of Cyprus is discussed, where political decisions resulted in a transfer of about …

, inadequate and/or difficult regulation of cross-border banking, worsening competitiveness, and bad political decisions at the …

) banks in emerging markets with tighter bank regulation and stronger investor protection experienced significantly less …-financial firm and commercial bank before the crisis, but the picture was quite different for large commercial banks States and for … investment banks worldwide. We document the following patterns: a) there was an increase in leverage ratios of investment banks …

of financial integration on business cycle synchronization as a robust regularity. We use a confidential dataset on banks …

prices that banks pay for liquidity, captured here by borrowing rates in repos with the central bank and benchmarked by the … overnight index swap. We have price data at the individual bank level and, unique to this paper, data on individual banks … liquidity. We find that the price a bank pays for liquidity depends on the liquidity positions of other banks, as well as its …

This paper studies the impact of competition on the determination of interest rates, and on banks’ risk taking … behaviour, under different assumptions about deposit insurance and the dissemination of financial information. We find that … lower entry costs foster competition in deposit rates and reduce banks’ incentives to limit risk exposure. While higher …