channel, one bank's capital policy affects the equity value and risk of default of other banks. In a model where such … externalities are strong, bank capital takes on the attribute of a public good, where the private equilibrium features excessive … implications of the model with observed bank behavior during the crisis of 2007-09 …

We investigate global factors associated with bank capital flows. We formulate a model of the international banking … system where global banks interact with local banks. The solution highlights the bank leverage cycle as the determinant of …

behavior. By paying out dividends, a bank transfers value to its shareholders away from creditors, among whom are other banks …. This way, one bank's dividend payout policy affects the equity value and risk of default of other banks. When such negative … externalities are strong and bank franchise values are not too low, the private equilibrium can feature excess dividends relative to …

One aim of post-crisis monetary policy has been to ease credit conditions for borrowers by unlocking bank lending. We … find that bank equity is an important determinant of both the bank's funding cost and its lending growth. In a cross …-country bank-level study, we find that a 1 percentage point increase in the equity-to-total assets ratio is associated with a 4 …

We document the triangular relationship formed by the strength of the US dollar, cross-border bank lending in dollars … contractions of cross-border bank lending in dollars. Differential sensitivity of CIP deviations to the strength of the dollar can … as proxy for the shadow price of bank leverage …

-funded capital injections. However, on closer inspection the composition of bank capital shifted radically from one based on common …