Recent research on central bank governance has focused mainly on their monetary policy task. As the sub-prime loan … public governance literatures, where present. Our analysis highlights a striking variety in central bank governance …

This Paper shows that bank closure policies suffer from a ‘too-many-to-fail’ problem: when the number of bank failures … is large, the regulator finds it ex-post optimal to bail out some or all failed banks, whereas when the number of bank …-ante standpoint. We formalize this time-inconsistency of bank regulation. We also argue that by allowing banks to purchase failed …

privately-optimal level of bank leverage is neither too low nor too high: It efficiently balances the market discipline that … of leverage. However, when correlated bank failures can impose significant social costs, regulators may bail out bank … this also compromises market discipline by making bank debt too safe. Optimal capital regulation requires that a part of …

Many of the world’s developed economies have introduced, or are planning to introduce, bank bail-in regimes. Both the … planned EU resolution regime and the European Stability Mechanism Treaty involve the participation of bank creditors in … bearing the costs of bank recapitalization via the bail-in process as one of the (main) mechanisms for restoring a failing …