clearing house (bank) which monitors agents and enforces contracts. Our model develops a concept of bankruptcy equilibrium that …

incentives to implement such a trigger? We construct a theoretical model of a bank that is financed with debt and equity, and a … bank manager monitoring the bank’s loan portfolio. The manager must be incentivized to warn the board before a crisis …. However, we show that the board may implement a contract with insufficient incentives to communicate a warning, as refinancing …

When politicians are provided with insufficient incentives by the democratic election mechanism, we show that social …

the public, long-term systemic risk among banks tends to increase. From the dynamic perspective, bank penalties represent … long-term. In this respect, bank penalties resemble still waters that run deep. In contrast, a settlement with regulatory …

effects on the current account. In particular we find that easing bank entry barriers is negatively associated with the … current account balance. In contrast, bank privatization and securities market deregulation tend to raise current account …

untraded consumer goods in an uncertain productive environment, borrowing funds from a bank in either the home or the foreign … of bank failure is partly borne by taxpayers in the bank's home countries. Moreover, each bank chooses the share of its … lending allocated between domestic and foreign firms, but the bank's overall loan volume is fixed by a capital requirement set …