most other regions of the world. The system in the Netherlands shares these characteristics. Over time, all countries have …

We analyse the relationship between tail risk and crisis measures by governments and the central bank. Using an … the central bank and the governments is less binding if the risk of contagion is high. The strategic interaction between … governments and the central bank also influences the effectiveness of the interventions. A joint effort of both the governments …

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 … requirements. In a world with much wholesale finance, capital requirements have a stronger impact on the real economy. But …

-ofbusiness supervision, whereas a merged central bank and pensions and insurance board take care of prudential supervision. The authorities …

, 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 …

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 …