rate risk shock increases by 63 percent and the contribution of interest rate risk shocks to business cycle volatility more …

the long-run. We offer an explanation of this finding that emphasizes differences between the bank-based German financial …

bank market values hardly respond to changes in the default risk of individual systemic banks. Together, however, changes …

This paper seeks to understand the interplay between banks, bank regulation, sovereign default risk and central bank … guarantees in a monetary union. I assume that banks can use sovereign bonds for repurchase agreements with a common central bank … cheaply, effectively shifting the risk of some of the potential sovereign default losses on the common central bank. …

Bank distress can have severe negative consequences for the stability of the financial system, the real economy, and … public finances. Regimes for restructuring and restoring banks financed by bank levies and fiscal backstops seek to reduce … these costs. Bank levies attempt to internalize systemic risk and increase the costs of leverage. This paper evaluates the …

sensitive to capital inflows. We provide evidence that global imbalances were a major positive funding shock for US wide banks …

financial transactions tax is entirely neutral. Second, in a model with correlated investment risk and short-term financing of …

This paper analyzes the effect of the removal of government guarantees on bank risk taking. We exploit the removal of …

Most theoretical central bank models use short horizons and focus on a single tradeoff. However, in reality central … bankruptcy. We term these factors discipline and stability effects, respectively. The central bank’s welfare decreases with …

constrain high risk bank investment without simultaneously reducing overall investment volume. However, if collusion between the …This paper models the strategic interaction between a rating agency, a bank and a bank regulator who lacks information … about bank asset risk. The regulator can either (1) make bank capital requirements contingent on credit ratings; or (2) set …