their creditworthiness and compare different types of subsidies with indirect subsidization through public banks. We find … that, in a large parameter range, the politician prefers public banks to direct subsidies because they avoid windfall gains … subsidies. One important prerequisite for this result is that public banks must not be allowed to fully compete with private …

We analyze the effect of negative monetary policy rates on banks, using detailed supervisory information from … Switzerland. For identification, we compare changes in the behavior of banks that had different fractions of their central bank … reserves exempt from negative rates. More affected banks reduce costly reserves and bond financing while maintaining non …

banks for each request. We show that households typically are not prudent risk managers but prioritize the minimization of … current mortgage payments over the risk of possible hikes in future mortgage payments. We also provide evidence that banks do … borrowers' affordability and credit risk. Our results challenge the implicit assumption of the existing mortgage choice …

We present a network model of the interbank market in which optimizing risk averse banks lend to each other and invest …

We present a network model of the interbank market in which optimizing risk averse banks lend to each other and invest …

equilibrium when banks have monopoly power, justifying a Pigouvian tax in this case. …

differences in financial factors, which may reflect differences in country risk and the legal and regulatory framework that banks …