, while the distortion costs are to a large extent fixed. This insight has important consequences. First, banks choose to …

We develop a model of banking industry dynamics to study the quantitative impact of capital requirements on equilibrium … where big banks with market power interact with small, competitive fringe banks. Banks face idiosyncratic funding shocks in … out of endogenous entry and exit, as well as banks' buffer stock of net worth. We show the model predictions are …

compensation for the illiquidity investors will be subject to. We argue that banks can resolve these liquidity problems that arise … in direct lending. Banks enable depositors to withdraw at low cost, as well as buffer firms from the liquidity needs of … such as narrow banking and bank capital requirements …

. More supervisory resources are spent on larger, more complex, and riskier banks. However, hours increase less than … reallocation of supervisory hours at times of stress and in the post-2008 enhanced supervisory framework for large banks, providing …

" banking outcomes. Although railroads improved economic conditions along their routes, we offer evidence of another channel …. Specifically, railroads facilitated better information flows about banks that led to modifications in bank asset composition …

We explore the actions of financially distressed banks in two distinct periods that include financial crises (1985 … widespread belief that distressed banks gamble for resurrection, we document that distressed banks take actions to reduce … forces beyond formal regulations incentivize bank managers to deleverage when their banks are in distress …

-2014 and investigate the time-series and cross-sectional patterns of banks' liquidity and liquidity risk. Aggregate banking … a stress test could have revealed the fragility of the banking system in early 2007. In the cross section, we find that … banks with more ex-ante liquidity mismatch have a higher stock-market crash probability and are more likely to borrow from …

Can banks maintain their advantage as liquidity providers when they are heavily exposed to a financial crisis? The … standard argument - that banks can - hinges on deposit inflows that are seeking a safe haven and provide banks with a natural … deposit rates and inflows during the 2007-09 crisis. Our results indicate that the role of the banking system as a stabilizing …