This paper argues that a special bank bankruptcy regime is desirable for the efficient restructuring and/or liquidation … to better mitigate disruptions in the financial system and minimize the social costs of bank distress. We compare the U ….S., UK, and German bank bankruptcy frameworks and describe the EU framework for cross-border bank bankruptcy. We support our …

Traditional theory suggests that high franchise value limits bank risk-taking incentives. Then why did many banks with … paper attempts to reconcile theory and evidence. We consider a setup where a bank takes risk by levering up, to invest in … risky market-based instruments. High franchise value allows the bank to borrow more, so it can take risk on a larger scale …

How damaging is competition between bank regulators? This paper develops a model in which both banks' risk profile and …. The paper also shows how complex balance sheet items give rise to a gradual rise in bank risk, followed by a sudden …

bank's z -scores through the network of the interbank market. Larger dependence on interbank borrowing and lending … increases bank risk. But only interbank funding exposures to other banks in the system exhibit significant spill …-over coefficients. Spatial lags for lending are insignificant while borrowing from other banks reduces individual bank risk if neighbors …

and examine the implications for bank risk. We find that banks use LLPs to manage the level and volatility of earnings … expected and unexpected losses that affects bank risk and profitability. …

This paper models a financial sector in which there is a feedback between individual bank risk and aggregate funding … premia on that market push up bank risk taking, leading to multiple equilibria. The model identifies shifts among equilibria … as a function of parameter shocks. Measures that reduce individual bank default risk within an equilibrium can actually …