While the balance sheet structure of U.S. banks influences how they respond to liquidity risks, the mechanisms for the … effects on and consequences for lending vary widely across banks. We demonstrate fundamental differences across banks without … foreign affiliates versus those with foreign affiliates. Among the nonglobal banks (those without a foreign affiliate), cross …

Banks are optimally opaque institutions. They produce debt for use as a transaction medium (bank money), which requires … that information about the backing assets - loans - not be revealed, so that bank money does not fluctuate in value …, needed for allocative efficiency. Intermediaries exist to hide such information, so banks select portfolios of information …

creditors. The consequence of this agency problem is that leverage restrictions on banks generate a very substantial welfare …

. Empirically, we find that intermediary leverage is negatively aligned with the banks' Value-at-Risk (VaR). Motivated by the …

Traditionally, banks and financial intermediaries borrow short and lend long. This causes a risk of negative net worth … of deposit insurance as a function of capital-asset ratio for a bank with demand liabilities and longer term, default …

We study asset and debt characteristics of US bank holding companies. We show that financial institutions, especially …

creation by the bank but enables the bank to survive more often and avoid distress. A more subtle effect is that banks with …Banks can create liquidity because their deposits are fragile and prone to runs. Increased uncertainty can make … deposits excessively fragile in which case there is a role for outside bank capital. Greater bank capital reduces liquidity …