independent than Central Banks are on their monetary task; (v) thesupervisory agency cannot rely on high powered incentives to …

The objective of this paper is to propose a model to assess risk for banks. Its main innovation is to incorporate … endogenous interaction between banks, recognising that the actual risk to which an individual bank is exposed also depends on its … interaction with other banks and other private sector agents. To this end, we develop a two-period general equilibrium model with …

calibrated against UK data. The model comprises a household sector, three active heterogeneous banks, a central bank … in our model, i.e. banks’ probabilities of default and banks’ profits - to a proxy of welfare. …

processes are evoked, how they interact and how they apply to consumers’ processing of marketing messages, the evaluation of …