information analysis, this paper outlines what signals a central bank might look for to determine if a financial crisis is …

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 …

recession caused by other forces. Based on a VAR and new data on the sources of bank failures in the 1930s from Richardson (2007 …), we find that illiquidity shocks played a key role in explaining the bank failures during the Friedman and Schwartz …

bank supervision and eventually produce banking crisis. For political reasons, most countries establish a regulatory … culture that embraces three economically contradictory elements: politically directed subsidies to selected bank borrowers …

Even after controlling for local economic conditions, differences in state bank supervision and regulation contribute … toward explaining the large variation in state bank suspension rates across U.S. counties during the Great Depression. More … requirements had the opposite effect. States that endowed bank supervisors with the authority to liquidate banks minimized …

We study a modification of the Diamond and Dybvig (1983) model in which the bank may hold a liquid asset, some … depositors see sunspots that could lead them to run, and all depositors have incomplete information about the bank's ability to … survive a run. The incomplete information means that the bank is not automatically incentivized to always hold enough liquid …

principle is that Japan's banks, insurance companies, and government financial agencies all suffer different problems and …

, highlighting the experience of Japan. By a host of criteria, Japan appeared to be in a stronger position than most countries at the …. However, Japan followed a clear international boom-and-bust pattern in terms of real output growth, credit growth and stock … macroeconomic variables and institutional characteristics. The model predicts a high probability of banking sector distress in Japan …