The paper analyzes a very stylized model of crises and demonstrates how the degree of strategic complementarity in the … liquidity risk and characterizes them. Both a solvency (leverage) and a liquidity ratio are required to control the …

The current financial crisis has sparked intense debate about how weak banks should be resolved. Despite international … methods adopted in the Nordic banking crises in the 1990s are generally acknowledged to include important elements of “best …

Traditionally banks have used securitization for expanding credit and thus their profitability. It has been well … documented that, at least before the 2008 crisis, many banks were keeping a high proportion of the securities that they created …-rated tranche. This paper builds a simple model of securitization that accounts for the above retention strategies. Banks in the …

17 advanced economies since 1870. The new data show that the share of mortgages on banks’ balance sheets doubled in the …

We present a network model of the interbank market in which optimizing risk averse banks lend to each other and invest …

defaults. The measure is based on an explicit criterion, the aggregate debt repayments, and is bank’s specific, affected by the … bank’s characteristics and links to other banks. Such measure can be useful to a regulator to determine in which banks cash …

This paper uses data from a panel of more than 400 Italian banks for the period 2001 – 2012 to examine the main …, signalling) or non-discretionary (related to the business cycle). The results suggest that LLP in Italian banks is driven mainly … local banks: since their loans are more collateralised, their behaviour is more strongly affected by supervisory activity …

banks play complex, long horizon games and face more than one tradeoff. We account for these issues in a simple infinite … bankruptcy. We term these factors discipline and stability effects, respectively. The central bank’s welfare decreases with … central banks cannot attain both low inflation and financial stability. …