Liquidity shocks transmitted through interbank connections contributed to bank distress during the Great Depression …

rate model with spatial and network effects. New data on correspondent networks and bank locations enables us to determine …

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 …