We examine the impact of so-called Crisis Contracts on bank managers' risktaking incentives and on the probability of … occurs and that leads to a form of collective liability for bank managers. We develop a game-theoretic model of a banking … remuneration of bank managers. We establish conditions under which the introduction of Crisis Contracts will reduce the probability …

Does an increase in competition increase or decrease bank stability? I exploit how the state-specific process of … significantly increases bank stability. This result is robust to the inclusion of additional fixed effects and other influences … loans and increases bank profitability. These findings suggest that competition increases stability as it improves bank …

previous research on the role of central banks as lenders of last resort in crises and on the real effects of bank lending and …

This paper distils three lessons for bank regulation from the experience of the 2009-12 euro-area financial crisis …. First, it highlights the key role that sovereign debt exposures of banks have played in the feedback loop between bank and …

We provide a rationale for bank money creation in our current monetary system by investigating its merits over a system …) costs from monitoring, aggregate lending to bank-dependent firms is inefficiently low. A monetary system with bank money … creation alleviates this problem, as banks can initiate lending by creating bank deposits without relying on household funding …

the role of the bank rescues in igniting the sovereign debt crisis and reviews approaches to detect early warning signals …