We conduct a laboratory experiment to examine under which circumstances a depositor-run at one bank may lead to a … depositor-run at another bank. We implement two-person coordination games which capture the essence of the Diamond-Dybvig (1983 …) bank-run model. Subjects in the roles of followers observe the deposit withdrawal decisions of leaders before they make …

are solvent. When one bank is insolvent, the stability of the banking system is affected in various ways depending on the … patterns of payments across locations. We investigate the ability of the banking system to withstand the insolvency of one bank … and whether the closure of one bank generates a chain reaction on the rest of the system. We analyze the coordinating role …

pre-crisis bank behavior, and suggest implications for the optimal design of capital regulation. …

spreads declined in response to the disclosure of stress test results. We also find that bank systematic risk, as measured by …

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 …