We study a modification of the Diamond and Dybvig (1983) model in which the bank may hold a liquid asset, some … depositors see sunspots that could lead them to run, and all depositors have incomplete information about the bank's ability to … survive a run. The incomplete information means that the bank is not automatically incentivized to always hold enough liquid …

We examine banking regulation in a macroeconomic model of bank runs. We construct a general equilibrium model where …

their investors. We show the bank has to have a fragile capital structure, subject to bank runs, in order to perform these … functions. Far from being an aberration to be regulated away, the funding of illiquid loans by a bank with volatile demand … such as narrow banking and bank capital requirements …

Motivated by public policy debates about bank consolidation and conflicting theoretical predictions about the … relationship between the market structure of the banking industry and bank fragility, this paper studies the impact of bank … concentration, bank regulations, and national institutions on the likelihood of suffering a systemic banking crisis. Using data on …

This paper identifies how bank branching benefited local economies during the Great Depression. Using archival data and … narrative evidence, I show how Bank of America's branch network in 1930s California created an internal capital market to … competing banking offices. The bank's presence caused smaller city property value contractions and stronger recoveries through …

Limited liability and asymmetric information between an investment bank and its lenders provide an incentive for a bank …

Now in prospect is a major revision of international bank capital regulations that would embody recent advances in … increase in bank failure rates over time …

bank supervision and eventually produce banking crisis. For political reasons, most countries establish a regulatory … culture that embraces three economically contradictory elements: politically directed subsidies to selected bank borrowers …

Even after controlling for local economic conditions, differences in state bank supervision and regulation contribute … toward explaining the large variation in state bank suspension rates across U.S. counties during the Great Depression. More … requirements had the opposite effect. States that endowed bank supervisors with the authority to liquidate banks minimized …