-efficient allocation that limits bank size. …

bank issues covered bonds backed by a pool of assets that is bankruptcy remote and replenished following losses …. Encumbering assets allows a bank to raise cheap secured debt and expand profitable investment, but it also concentrates risk on …

market risks of banks are intertwined. We highlight how coordination failure between a bank's creditors and adverse selection … in the secondary market for the bank's assets interact, leading to a vicious cycle that can drive otherwise solvent banks … to illiquidity. Investors' pessimism over the quality of a bank's assets reduces the bank's recourse to liquidity, which …

We model bank management actions in severe stress test conditions using a game-theoretical framework. Banks update …

This paper studies how banks simultaneously manage the two sides of their balance sheet and its implications for bank … risk taking and real economic activity. First, we analyze how changes in funding affect the supply of bank loans. We then …