level. All of the effects are more pronounced for trading banks with higher capital levels. Finally, banks use central bank …

The declared intention of policy makers is that future bank restructuring should be conducted through bail-in rather … implementation of bank resolution regimes, supporting the saying that actions speak louder than words. …

policy shocks to bank lending and real activity. We first use a large panel of U.S. banks to show that the sensitivity of … bank profits to interest rates increases significantly with measured income gap, even when banks use interest rate … derivatives. We then document that, in the cross-section of banks, income gap predicts the sensitivity of bank lending to interest …

in credit default swaps (CDS). A CDS contract written by a bank to insure against the default of another bank is exposed …