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 …

mismatch in their balance sheets. The data suggest that foreign banks had to borrow from the Federal Reserve Bank to meet their …

The 2008 financial crisis is reminiscent of a bank run, but not quite. In particular, it is financial institutions … withdrawing deposits from some core financial institutions, rather than depositors running on their local bank. These core … discounts to do so. I therefore set out to provide a model of a systemic bank run delivering six stylized key features of this …

in the financial sector of the U.S. economy. The analysis focuses on contingent liability of bank owners for losses …

We use a novel data set spanning 1820-1910 to examine the origins of bank supervision and assess factors leading to the … creation of formal bank supervision across U.S. states. We show that it took more than a century for the widespread adoption of …

how they are resolved. Our analysis sheds new light on the conflict between micro-prudential bank regulation and …