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 …

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 …

Motivated by public policy debates about bank consolidation and conflicting theoretical predictions about the … relationship between the market structure of the banking industry and bank fragility, this paper studies the impact of bank … concentration, bank regulations, and national institutions on the likelihood of suffering a systemic banking crisis. Using data on …

efforts to supervise and guarantee bank solvency. African depositors face high costs for mitigating the loss exposures that …

implemented) can change the bank's incentives so that runs are less likely. Optimal regulation would not mimic these rules …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 …

accounting for loan portfolios held to maturity. Marked-to-market bank assets have declined by an average of 10% across all the …-- unlike insured depositors, uninsured depositors stand to lose a part of their deposits if the bank fails, potentially giving … them incentives to run. A case study of the recently failed Silicon Valley Bank (SVB) is illustrative. 10 percent of banks …

" bank-distress episodes …

public-interest view of regulation, not regulatory capture …

policy implications as they imply that the same regulation will have different effects on bank risk taking depending on the …, their ownership structures, and national bank regulations. We focus on conflicts between bank managers and owners over risk …, and show that bank risk taking varies positively with the comparative power of shareholders within the corporate …