, 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 …

Simultaneous bank defaults are often attributed to interbank contagion, but can also be due to common shocks affecting … banks with similar balance sheets. We disentangle both effects by realising that if financial markets expect a bank …'s default to be contagious, an increase in this bank's default probability should lower other banks' market valuations. When we …

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

. Negative media reports, falling stock prices, and opaque product information also affect trust in banks. Experiencing a bank … bailout leads to less concern about government intervention, while experience of a bank failure leads to greater concern on …

crisis. For identification, we use matched bank-firm level data, including many small and medium-sized firms, in Eastern … have a relationship with an internationally-borrowing domestic or a foreign bank (as compared to a locally-funded domestic … bank) suffer more in their financing and real performance. Single-bank-relationship firms, small firms and firms with …

the dating of banking crises according to these databases using information on the number and size of bank failures for …

Do tightenings of bank lending standards permanently reduce bank lending? We construct a measure of a bank's level of … lending standards using micro-data from the sample of banks participating in the Eurosystem Bank Lending Survey in The … relevant; a one point tightening reduces a bank's quarterly growth rate of business lending by about half a percentage point …