implementations of the funds concentration effect and the corresponding discriminatory bailout scheme: “random bailout“ and “bailout …

contrast, bailout policies are centralized only when international spillovers from cross-border bank ownership are strong, and … externalities between the two countries arise from cross-border bank ownership. The two countries face (i) a regulatory decision of … which banks are to be shut down before they can go bankrupt, and (ii) a loss allocation – or bailout – decision of who pays …

Japanese banking crisis. By leveraging a unique dataset merging firm-level financial statements and bank balance sheets, the …

regulation on the probability of a crisis. We test this relationship by applying a Probit model of a non-linear specification to … annual data from 1999 to 2011 drawn from 132 countries. The probability of a financial crisis fits an inverted U-shaped curve …

ratio) and size (TBA) of the industry are linked to lower sovereign risk in general. Foreign bank penetration and … after the onset of the sovereign crisis in Europe. …

This paper explains both the onset of the financial crisis in 1998 and the striking economic recovery afterwards in … Russia and other Former Soviet Union (FSU) economies. Before the crisis banks do not lend to the real sector of the economy … and firms use non-bank finance, including trade credits and barter trade, to finance production. The banking failure …

This paper studies the role of a lender of last resort (LLR) in a monetary model where a shortage of bank's monetary …

This paper studies the role of a lender of last resort (LLR) in a monetary model where a shortage of a bank's monetary … reserves (a liquidity crisis) occurs endogenously. We show that discount window lending by the LLR is welfare-improving but … reduces banks' ex-ante incentive to hold monetary reserves, which increases the probability of a liquidity crisis, and can …

This paper analyzes the effect of the removal of government guarantees on bank risk taking. We exploit the removal of …

welfare. -- bailout ; contagion ; financial crisis ; international institutional arrangements …Financial institutions are increasingly linked internationally. As a result, financial crisis and government … intervention have stronger effects beyond borders. We provide a model of international contagion allowing for bank bailouts. While …