We propose a novel mechanism, “financial dampening,” whereby loan retrenchment by banks attenuates the effectiveness of … monetary policy. The theory unifies an endogenous supply of illiquid local loans and risk-sharing among subsidiaries of bank … holding companies (BHCs). We derive an IV-strategy that separates supply-driven loan retrenchment from local loan demand, by …

focuses, in particular, on the implicit guarantees that governments extend to banks and other financial institutions, which …

We develop a new identification strategy to evaluate the impact of the geographic expansion of bank holding company … (BHC) assets across U.S. metropolitan statistical areas (MSAs) on BHC risk. We find that the geographic expansion of bank …

This paper provides an empirical analysis of the risk of trading revenues of U.S. commercial banks. We collect … overall picture from these preliminary results is that there is a fair amount of diversification across banks and within banks …

governments “kicked the can down the road” by providing banks with guarantees instead of full-fledged recapitalizations. We adopt … their consequences. We find that forbearance caused undercapitalized banks to shift their assets from loans to risky …, eventually, greater reliance on liquidity support from the European Central Bank …

between banks%u2019 equity prices. We use new tools available from multivariate extreme value theory to estimate individual … banks%u2019 exposure to each other (%u201Ccontagion risk%u201D) and to systematic risk. Moreover, by applying structural … economies in the world. Finally, for Europe we assess the relative importance of cross-border bank spillovers as compared to …

-revealing securities markets for bank liabilities be closed. That is, banks are optimally opaque, which is why they are regulated and …An examination of U.S. banking history shows that economically efficient private bank money requires that information … examined. I show this by examining the transition from private bank notes, the predominant form of money before the U.S. Civil …