by the banks. It is shown that if the supervisors have a limited ability to identify or to sanction dishonest banks, an … helps to offset the banks' potential capital savings of understating their risks by (i) reducing banks' put option value of … limited ex ante, and by (ii) increasing the banks' net worth, which in turn enhances the supervisors' ability to sanction …

by the banks. It is shown that if the supervisors have a limited ability to identify or to sanction dishonest banks, an … helps to offset the banks' potential capital savings of understating their risks by (i) reducing banks' put option value of … limited ex ante, and by (ii) increasing the banks' net worth, which in turn enhances the supervisors' ability to sanction …

While monetary targeting has become increasingly rare, many central banks attach weight to money growth in setting …

In this paper, we analyze the price setting behavior of banks in the Swiss franc repo market by means of network …

rate. First, banks that have access to the secured interbank market and the SNB's monetary policy operations pay less than … banks without access. Second, domestically unchartered, foreign banks pay more than domestic banks. We find that these …