substituted by liquidity regulation, a bank's disclosure requirement and size remain significant. A key takeaway from our analysis … countries over a ten-year period. We highlight the role of several bank-specific, institutional and policy variables in shaping … banks' liquidity risk management. Our main question is whether the presence of liquidity regulation substitutes or …

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 …

to a liquidity regulation that is very similar to Basel III's Liquidity Coverage Ratio (LCR). We find that most banks … the regulation. More solvent banks hold fewer liquid assets against their stock of liquid liabilities, suggesting an …

interaction between politicy makers and pressure groups. The second half of the report is devoted to bank regulation. It is argued …This report presents an overview of the theory of regulation in general, with special attention for the regulation of … banks. Two theories of government regulation are described. The first, normative, theory uses market failures as the …

requirements. It extends the Stiglitz-Weiss model of credit rationing to allow for bank default. Bank capital structure then …. Introducing bank financiers, the paper also shows that uninsured funding raises the sensitivity of rationing to capital …

depositors against unexpected liquidity needs, (2) bank runs as an act of collective irrationality by rational depositors, and (3 …) the introduction of deposit insurance as an efficient mechanism to prevent bank runs. Extensions of the Diamond …-Dybvig model deal with the panic explanation for bank runs, the consequences of open economies, and different solutions for …

burden of the banking sector is modest. We model a regulator whose trade-off between bank risk and credit supply is derived … has through bank incentives. The larger the correlation between banks' projects, the more important the role for monetary … policy. In a dynamic setting, not internalizing bank risk leads a monetary authority to keep rates low for too long after a …

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

paper I show that first-best regulation also leads to more attention for the fundamentals of countries to which capital is …