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 …

banks. However if in extreme scenarios the LCR becomes a binding constraint, the interaction of bank behaviour with the …-testing model, which takes into account the impact of bank reactions on second round feedback effects. We show that a flexible …

effectively allows banks to borrow against lower interest rates than their shareholders. Bank diversification increases …, diversify, and lower their lending standards. Bank leverage increases shareholder value because maturity transformation … shareholder value by enabling banks to lever more. When the gains from maturity transformation are passed on to bank customers …

In this study we disentangle two dimensions of banks' systemic risk: the level of bank tail risk and the linkage … between a bank's tail risk and severe shocks in the financial system. We employ a measure of the systemic risk of financial … bank characteristics are related to bank tail risk and systemic linkage. The interrelationship between bank characteristics …