This paper distils three lessons for bank regulation from the experience of the 2009-12 euro-area financial crisis …. First, it highlights the key role that sovereign debt exposures of banks have played in the feedback loop between bank and …

We examine the impact of so-called Crisis Contracts on bank managers' risktaking incentives and on the probability of … occurs and that leads to a form of collective liability for bank managers. We develop a game-theoretic model of a banking … remuneration of bank managers. We establish conditions under which the introduction of Crisis Contracts will reduce the probability …

previous research on the role of central banks as lenders of last resort in crises and on the real effects of bank lending and …

We model the impact of bank mergers on loan competition, reserve holdings and aggregate liquidity. A merger changes the … distribution of bank sizes and aggregate liquidity needs. Mergers among large banks tend to increase aggregate liquidity needs and … thus the public provision of liquidity through monetary operations of the central bank. …

Modern bank management comprises both classical lending business and transfer of asset risk to capital markets through …

stock prices of non-financial firms. Bank targets become more profitable and larger, while those of non-financial firms … remain mostly unaffected. A major determinant of the positive bank returns is the degree of opaqueness that characterizes the … institutional setup for supervisory bank merger reviews. The legal design of the supervisory control of bank mergers may therefore …