bank supervision and eventually produce banking crisis. For political reasons, most countries establish a regulatory … culture that embraces three economically contradictory elements: politically directed subsidies to selected bank borrowers …

efforts to supervise and guarantee bank solvency. African depositors face high costs for mitigating the loss exposures that …

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 …

implemented) can change the bank's incentives so that runs are less likely. Optimal regulation would not mimic these rules …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 …

recession caused by other forces. Based on a VAR and new data on the sources of bank failures in the 1930s from Richardson (2007 …), we find that illiquidity shocks played a key role in explaining the bank failures during the Friedman and Schwartz …

inforamtion framework shows why the banking sector is so important to the economy, and provides a rationale for bank regulation …

Even after controlling for local economic conditions, differences in state bank supervision and regulation contribute … toward explaining the large variation in state bank suspension rates across U.S. counties during the Great Depression. More … requirements had the opposite effect. States that endowed bank supervisors with the authority to liquidate banks minimized …

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