real activity. Bank state aid multipliers are in the same range as conventional fiscal spending multipliers. Support for …

‘pecuniary externalities’. Two that affect borrowers and lenders balance sheets in pro-cyclical fashion are described, along with … measures that might help curb their destabilising effects. These ‘pecuniary externalities’ can be thought of as the unintended … Greenwald and Stiglitz (1986) – that when externalities are present, leaving things to the market may not be ‘constrained Pareto …

externalities are strong and bank franchise values are not too low, the private equilibrium can feature excess dividends relative to … behavior. By paying out dividends, a bank transfers value to its shareholders away from creditors, among whom are other banks …. This way, one bank's dividend payout policy affects the equity value and risk of default of other banks. When such negative …

banks. When such negative externalities are strong and bank franchise values are not too low, the private equilibrium can … smooth dividend policy. We present a model that explains this behavior in a setting where there are financial externalities … across banks. In particular, by paying out dividends, a bank transfers value to its shareholders away from its creditors, who …

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 …

-source bank income is found to reduce banking-sector FDI. Furthermore, such taxation is almost fully passed on into higher … international banks, and that the incidence of international double taxation of banks is on bank customers in the foreign subsidiary …