their investors. We show the bank has to have a fragile capital structure, subject to bank runs, in order to perform these … functions. Far from being an aberration to be regulated away, the funding of illiquid loans by a bank with volatile demand … such as narrow banking and bank capital requirements …

policy is non-targeted. The ex post benefits from a monetary bailout accrue in proportion to the number amount of leverage … bailout instruments is endogenous and characterize the structure of optimal bailouts …

-sector-time panels to assess how different funding structures are related to financial stress. A higher share of funding from non-bank …

information analysis, this paper outlines what signals a central bank might look for to determine if a financial crisis is …

macroprudential tax revenue in a bailout fund used for stimulus measures is undesirable …

Motivated by public policy debates about bank consolidation and conflicting theoretical predictions about the … relationship between the market structure of the banking industry and bank fragility, this paper studies the impact of bank … concentration, bank regulations, and national institutions on the likelihood of suffering a systemic banking crisis. Using data on …

We study a modification of the Diamond and Dybvig (1983) model in which the bank may hold a liquid asset, some … depositors see sunspots that could lead them to run, and all depositors have incomplete information about the bank's ability to … survive a run. The incomplete information means that the bank is not automatically incentivized to always hold enough liquid …