We investigate whether the “stress test,” the extraordinary examination of the nineteen largest U.S. bank holding … companies conducted by federal bank supervisors in 2009, produced information demanded by the market. Using standard event study … bank opacity and the value of government monitoring of banks …

developing a new methodology to separate firms' credit shocks from loan supply shocks, using a vast sample of matched bank …-firm lending data. We decompose loan movements in Japan for the period 1990 to 2010 into bank, firm, industry, and common shocks … economy, which creates a role for granular shocks, as in Gabaix (2011). As a result, idiosyncratic bank shocks -- movements in …

intermediation through MMFs allows investors to limit their exposure to a given bank (i.e., reap gains from diversification). However …-intermediated financial system is the release of private information on bank assets, which is aggregated by MMFs and could lead them to … withdraw en masse from a bank. In addition, we show that MMF intermediation can also be a channel of contagion among banking …

International financial linkages, particularly through global bank flows, generate important questions about the …. Empirical tests of the trilemma support this view that global bank effects are heterogeneous and that the primary drivers of …

use bank guarantees also varies systematically with global conditions, expanding when aggregate risk is higher and funding … is cheaper. The response of bank trade finance to changes in these macro factors is heterogeneous, however. In countries … with intermediate levels of credit risk, which rely the most on bank guarantees, bank trade finance adjusts the least. We …

and the optimal policy of a central bank in response to both idiosyncratic and aggregate shocks. In particular, we … consider how the interbank market affects a bank's choice between holding liquid assets ex ante and acquiring such assets in … the market ex post. We show that a central bank should use different tools to manage different types of shocks …