When a bank experiences a negative shock to its equity, one way to return to target leverage is to sell assets. If … asset sales occur at depressed prices, then one bank's sales may impact other banks with common exposures, resulting in … explains how the distribution of bank leverage and risk exposures contributes to a form of systemic risk. We compute bank …

We study information acquisition and dynamic withdrawal decisions when a spreading rumor exposes a solvent bank to a … run. Uncertainty about the bank's liquidity and potential failure motivates depositors who hear the rumor to acquire … additional noisy signals. Depositors with less informative signals may wait before gradually running on the bank, leading to an …

bank failure rates in Michigan during the period 1932-1934, which includes the important Michigan banking crisis of early … purchases (the policy tool employed after March 1933) on bank failure rates. Our estimates treat the receipt of RFC assistance … assistance that are not directly related to failure risk) for analyzing the effects of RFC assistance on bank survival. We find …

behavior. By paying out dividends, a bank transfers value to its shareholders away from creditors, among whom are other banks …. This way, one bank's dividend payout policy affects the equity value and risk of default of other banks. When such negative … externalities are strong and bank franchise values are not too low, the private equilibrium can feature excess dividends relative to …

We develop a model of the joint capital structure decisions of banks and their borrowers. Strikingly high bank leverage … emerges naturally from the interplay between two sets of forces. First, seniority and diversification reduce bank asset … underlie our structural model, we can quantify the impact capital regulation and other government interventions have on bank …

. In a financial crisis bank health is significantly damaged. Post-crisis regulatory changes have aimed at restoring bank … health, but measuring bank health by Tobin's Q, we find that the ill health of banks in the recent U.S. financial crisis and … by the state of the macro-economy. The results seem to suggest that bank regulatory changes may be repressive …

Reserve Board of Governors demonstrate that deposit insurance influenced the composition of bank suspensions in these states … each system, the bank failure rate rose to an unsustainable height and the system ceased operations …

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