This paper provides a brief overview of the recent practice of stress testing banking institutions, focusing on capital adequacy. We argue that stress testing has been successfully used to mitigate bank opacity; quantify systemic risk under extreme but plausible stress; keep the participants...

Using unique, daily, account-level balances data we investigate deposit stability and the drivers of deposit outflows and inflows in a distressed bank. We observe an outflow (run-off) of uninsured depositors from the bank following bad regulatory news. We find that government deposit guarantees,...

Although a body of theoretical literature asserts that a key advantage of banks is their ability to monitor borrowers, we believe this is the first paper to empirically examine determinants of bank monitoring within non-syndicated loans. Using a proprietary transaction-level database consisting...