A lending boom is reflected in the composition of bank liabilities when traditional retail deposits (core liabilities …. We formulate a model of credit supply as the flip side of a credit risk model where a large stock of non-core liabilities … serves as an indicator of the erosion of risk premiums and hence of vulnerability to a crisis. We find supporting empirical …

This paper considers the meaning of domestic and international systemic risk. It examines scenarios that have been … adduced as creating systemic risk both within countries and among them. It distinguishes between the concepts of real and … pseudo-systemic risk. We examine the history of episodes commonly viewed either as financial crises or as evidencing systemic …

(BHC) assets across U.S. metropolitan statistical areas (MSAs) on BHC risk. We find that the geographic expansion of bank …We develop a new identification strategy to evaluate the impact of the geographic expansion of bank holding company … assets reduces risk. Moreover, geographic expansion reduces risk more when BHCs expand into economically dissimilar MSAs, i …

monetary policy. The theory unifies an endogenous supply of illiquid local loans and risk-sharing among subsidiaries of bank …

We analyze a variant of the Diamond-Dybvig (1983) model of banking in which savers can use a bank to invest in a risky … project operated by an entrepreneur. The savers can buy equity in the bank and save via deposits. The bank chooses to invest … in a safe asset or to fund the entrepreneur. The bank and the entrepreneur face limited liability and there is a …

Liquidity shocks transmitted through interbank connections contributed to bank distress during the Great Depression … network liquidity risk, suggesting that banks expected the Fed to reduce that risk. Because the Fed's presence removed the … risk, it likely contributed to the banking system's vulnerability to contagion during the Depression …

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

: (1) financial crisis is unlikely to happen in the near future, and (2) the ultimate risk lies with China's economic …Motivated by growing concerns about the risks and instability of China's financial system, this article reviews several … commonly perceived financial risks and discusses their roots in China's politico-economic institutions. We emphasize the need …