crisis. The difference in costs of out-of-the-money put options for individual banks, and puts on the financial sector index … financial sector, which lowers index put prices far more than those of individual banks, explains the divergence in the basket …

This paper studies the impact of competition on the determination of interest rates, and on banks’ risk taking … lower entry costs foster competition in deposit rates and reduce banks’ incentives to limit risk exposure. While higher …

This paper reports estimates of the long-run costs and benefits of banks funding more of their assets with loss … of the benefits from having banks use more equity no estimate of costs--however accurate--can tell us what the optimal … level of bank capital is. We use empirical evidence on UK banks to assess costs; we use data from shocks to incomes from a …

We develop a dynamic model to assess the effects of liquidity and leverage requirements on banks' insolvency risk. The … model features endogenous capital structure, liquid asset holdings, payout, and default decisions. In the model, banks face …

I use a new Call Reports data item to revisit the role of advertising in US commercial banking. I examine how banks … addresses the endogeneity of market structure and advertising variables using instrumental variables. I find that banks … advertise more with increasing market concentration, whereas banks with larger market shares and size advertise less. I also …