length of the investment horizon are critical factors when determining bank capital needs in a crisis. We show that capital …. Further, we find that the new bank capital requirements under the so-called Basel 3 agreement would enable banks to absorb …

cross deposits and there is a central bank. The goal is to study how these elements affect the deposit contract that banks … offer to depositors and the ex ante probability of a bank run. We show that the coexistence of a central bank, which … a bank run and to fewer inefficient bank runs, relative to the case with no central bank and no interbank market. By …

This paper develops a model and structural dynamic estimation of bank behavior to map the relationship between U ….S. banks’ choices of foreign banking activities, and bank and foreign market traits. This estimation framework is applied to a … unique bank-level dataset compiled from regulatory sources, covering U.S. banks’ foreign activities in 83 host markets over …

customers, shut out of public debt markets, get bank loans through drawdowns of loan commitments. Unlike TARP under …

This paper studies international diversification in banking, exploiting a bank-level dataset that covers the operations … were somewhat reduced by the concentration of bank subsidiaries in specific geographical regions, which is typical of the … bank assets relative to the results of a mean–variance portfolio optimization model. …

This paper investigates the relationship between the two major sources of bank default risk: liquidity risk and credit … these two risk sources on the bank institutional-level and how this relationship influences banks’ probabilities of default … increase the PD, the influence of their interaction depends on the overall level of bank risk and can either aggravate or …