recognizing greater risks and losses, can lead to solvency problems that look like liquidity (bank-run) crises. Regulatory …

The first part of this paper provides a historical perspective on bank risks. Five-year moving average measures of … total risk, market risk, and nonmarket risk are computed for an index of New York banks from 1929-1975 and for an index of … outside New York banks from 1950-1976.We use a carefully constructed series of bank balance sheet data to compute correlations …

of deposit insurance as a function of capital-asset ratio for a bank with demand liabilities and longer term, default-risk …Traditionally, banks and financial intermediaries borrow short and lend long. This causes a risk of negative net worth …

potential liability of the insurer. It shows that an increase in asset risk, holding value constant, increases the value of …

deposits excessively fragile in which case there is a role for outside bank capital. Greater bank capital reduces liquidity … creation by the bank but enables the bank to survive more often and avoid distress. A more subtle effect is that banks with … different amounts of capital extract different amounts of repayment from borrowers. The optimal bank capital structure trades …

Bank balance sheet lending is commonly viewed as the predominant form of lending. We document and study two margins of … document the limits of the shadow bank substitution margin: shadow banks substitute for traditional--deposit-taking--banks in … quantitative consequences of several policies on lending volume and pricing, bank stability, and the distribution of consumer …