We analyze the problem of a policy authority (PA) that must decide when to resolve a troubled bank whose underlying … solvency is uncertain. Delaying resolution increases the chance that information arrives that reveals the bank's true solvency … efficient resolution decision following the arrival of information. Providing the bank with liquidity support buys the PA time …

competition. Here, we employ a novel approach to account for IRS that are both unexpected and effective for a bank’s business … theory that monopolistic firms undersupply the market when utilizing their high pricing power in the bank competition …–liquidity creation nexus. While positive IRS per se lead to an increase in bank liquidity creation, we find that a high bank …

externalities between the two countries arise from cross-border bank ownership. The two countries face (i) a regulatory (super … policies are centralized only when international spillovers from cross-border bank ownership are strong, and banking sectors …

bank profits, taxpayers, and consumers. …

bank (G-SIB) envisaged by regulators has an impact on the CDS prices of these banks. We find evidence that the CDS spreads … of a G-SIB bank increase (decrease) after the announcement of a higher (lower) capital surcharge. However, this effect is … contributes to the debate on whether being designated as a G-SIB bank necessarily leads to implicit "too-big-to-fail" subsidies …

bank-level data for German banks, we find evidence that a bank's exposure to interest rate risk depends on its presumed … optimization horizon. The longer the presumed optimization horizon is, the more the bank is exposed to interest rate risk in its … exposure to interest rate risk. The more a bank is exposed to the risk of a decline in the interest rate level, the higher its …