-funded capital injections. However, on closer inspection the composition of bank capital shifted radically from one based on common …

behavior. By paying out dividends, a bank transfers value to its shareholders away from creditors, among whom are other banks …. This way, one bank's dividend payout policy affects the equity value and risk of default of other banks. When such negative … externalities are strong and bank franchise values are not too low, the private equilibrium can feature excess dividends relative to …

We study the dynamics linking monetary policy with bank leverage and show that adjustments in leverage act as the … between increased leverage of global banks and capital flows amid currency appreciation for capital recipient economies …

central bank of tracking of the flexible price equilibrium values of the natural levels of output and the real interest rate …