these operations. Despite a vast literature on the topic, central bank approaches and practices vary considerably. In this …

We study the effects of a bank's engagement in trading. Traditional banking is relationship-based: not scalable, long …-based: scalable, shortterm, capital constrained, and with the ability to generate risk from concentrated positions. When a bank … inefficiencies. A bank may allocate too much capital to trading ex-post, compromising the incentives to build relationships ex …

feedback effects to the real economy generated by bank failures. On a cross-section of countries, we find evidence that … suggests that bank supervisors' intervention in bank failures may be positively associated with some aspects of the …