We develop a model of bank risk-taking with strategic sovereign default risk. Domestic banks invest in real projects … their default risks through purchases of bonds. But, for high debt levels, this influence is lost since bank and government …

characterizes the size and sign of its fiscal footprint, as well as the states of the world in which the temptation for fiscal goals …

banks with foreign affiliates for the years 2002-2011, we study bank internationalization before and during the crisis. Our …

This paper introduces a new transmission channel of banking crises where sizable cross-border bank claims on foreign …

One of the main concerns associated with central bank digital currencies (CBDC) is the disintermediating effect on the … banking sector in general, and the risk of bank runs in times of crisis in particular. This paper examines the implications of … an interest-bearing CBDC on banking crises in a dynamic bank run model with a financial accelerator. The analysis …

We employ proprietary data from a large bank to analyze how – in times of crisis – depositors react to a bank … nationalization, re-privatization and an accompanying increase in deposit insurance. Nationalization slows depositors fleeing the bank …

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 …