monetary policy by lowering search costs and expanding bank markets. This paper studies the reaction of online banks to changes … online banks. Consistent with the rate movements, online bank deposits experience inflows, while traditional banks experience …

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 …-ante optimal: individual banks do not internalize that higher leverage makes other banks more vulnerable. The theory calls for …

Before the era of large central bank balance sheets, banks relied on incoming payments to fund outgoing payments in … order to conserve scarce liquidity. Even in the era of large central bank balance sheets, rather than funding payments with … balances. Our findings are timely, given the ongoing shrinking of central bank balance sheets around the world in response to …

mortgage rates move one-for-one with 10-year swap rates, leaving little explanatory power for mortgage concentration, bank …

Bank branch density, defined as the number of bank branches to total deposits, has significantly declined over the past …

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 …

locations of large-bank branches have demographics typically associated with greater financial sophistication, large-bank …