We show that stricter bank liquidity standards can trigger unintended credit booms when there is heterogeneity in …

In 2011, Colombia instituted a tax on repayment of bank loans, thereby increasing the cost of short-term bank credit … firms from bank liquidity shocks …

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 …

market substitutes for bank liabilities do not escape from the cost of reserves since their issuers lean on banks to provide …, including non-bank intermediaries, reserves cannot represent a tax on the banking system alone …

simple model where, even ignoring interconnectedness issues, the failure of a bank causes a larger welfare loss than the … banks, and the size of this response should be larger if a bank, rather than a similarly-sized nonfinancial firm, fails …

hedge to fund drawn credit lines and other commitments. We shed new light on this issue by studying the behavior of bank …