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 …

theory, we document that banks' net interest margins have been highly stable and insensitive to interest rates, and banks …

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 …

Diamond-Dybvig [1983] provide a model of intermediation in which bank runs are driven by pessimistic depositor … the conditions necessary for bank runs relative to the Diamond-Dybvig model in which no liquid investments occur in …

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 …

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 …