How to prevent runs on open-end mutual funds? In recent years, markets have observed an innovation that changed the way …

We present a model in which shadow banking arises endogenously and undermines marketdiscipline on traditional banks …. Depositors' ability to re-optimize in response to crisesimposes market discipline on traditional banks: these banks optimally … on the 2008 financial crisis in theUnited States, during which shadow banks experienced a sudden dry-up of funding …

Outside of financial crises, investors have little incentive to produce private information on banks' short …

government interventions in more than 800 banks across 27 countries between 2007 and 2017. For identification, we use a … multivariate matching method. We find that intervened banks experience a significant decline in market power with respect to … matched non-intervened banks. This effect is more pronounced for larger and longer interventions and is driven by a rise in …

in the cleared segment of the market. This reflects a preference for dealers and banks to transact in the cleared rather … than the bilateral segment. Funding decreases towards non-banks, only increasing for hedge funds. Further, spreads are … higher when dealers and banks lend to rather than borrow from non-banks. Our results can inform the policy debate around the …