system. We show that information-based bank runs may be inefficient because the deposit con-tract designed to provide … liquidity induces depositors to have excessive incentives to withdraw. An im-provement in transparency of a bank may reduce … depositor welfare through increasing the chance of an inefficient contagious bank run on other banks. A deposit insurance system …

responsibility of the prudential operation of each bank on its directors and management, with penalties and financial liability for … false statements; avoiding putting taxpayer funds at risk, by making it clear that no bank is too big to fail and focusing … a whole when a bank gets into difficulty. By these means, the moral hazard inherent in bank supervision and the costs of …

designing a relationship-lending model in which a bank operates as a financial intermediary and centralised monitor. In the … absence of deposit insurance, the bank’s limited liability option creates an incentive problem between the bank and its …, the bank must signal its safety to depositors by maintaining the equity ratio held. The optimal equity ratio is dynamic …

The impact of cross-border bank M&As on bank risk remains an open question. Though geographically diversifying bank M …&As have the potential to reduce the risk of bank insolvency, they also have the potential to increase that risk due to the … increase in risk-taking incentives for bank managers and stockholders following these transactions. This paper empirically …

institutions on bank risk-taking behaviour. This paper examines a wide array of institutional reforms in respect of law and legal … effects of institutional reforms on bank risk are more pronounced for domestic banks than foreign banks. From the policy …