Today’s regulatory rules, especially the easily-manipulated measures of regulatory capital, have led to costly bank … failures. We design a robust regulatory system such that (i) bank losses are credibly borne by the private sector (ii …) systemically important institutions cannot collapse suddenly; (iii) bank investment is counter-cyclical; and (iv) regulatory …

creating counter-cyclical incentives for banks to raise capital, and so encourage bank lending in bad times. They avoid the …

Tripartite financial stability arrangement between the Treasury the Bank of England and the FSA, weaknesses in the Bank of …

by turning to other banks. Importantly the bank-lending channel is notably stronger when we account for unobserved time …

and bank equity yield a uniquely determined steady state. We highlight three properties when shocks to wealth …, surprisingly, cause persistent booms of banking and even of the entire economy – after an initial bust. Third, shocks to bank …

crucial novel feature is the competition between lenders in their choice of contracts offered. The quality of investment … distribute themselves across all offered contracts. Competition between banks introduces three possibilities for a breakdown of … credit markets which do not occur when a bank has a monopoly. First, average returns decrease since banks compete for good …

higher rents earned with less competition. Entry and investor protection improve when wealth distribution becomes less …

benefits of universal banking. We find that a firm whose equity was underwritten by a bank-affiliated underwriter, when the … same bank was also a large creditor of the firm in the IPO year, exhibits significantly better than average post …. When an investment fund managed by the same bank is heavily involved in the IPO as buyer of the newly-issued equity, the …