core. The estimated model matches four facts about banks' Tobin's Q that summarize bank leverage dynamics. (1) Book and … nor market leverage constraints are binding for most banks; (4) bank leverage and Tobin's Q are mean reverting but highly …

-collected historical daily dataset on loans to commercial banks, we analyze how personal connections matter for lending of last resort …, highlighting the importance of governance for this core function of central banks. We show that, when faced with a banking panic in … connected banks - those whose board members were BdF shareholders. The BdF's selective lending policy failed to internalize a …

We study an environment where the capital structure of banks and firms are jointly determined in equilibrium, so as to … assets held by firms and banks is determined by the technology choices by firms and the portfolio diversification choices by … banks. We show competitive equilibria are efficient and the equilibrium level of leverage in banks and firms depend on the …