Under the New Basel Accord bank capital adequacy rules (Pillar 1) are substantially revised but the introduction of two …

deposits excessively fragile in which case there is a role for outside bank capital. Greater bank capital reduces liquidity … creation by the bank but enables the bank to survive more often and avoid distress. A more subtle effect is that banks with … different amounts of capital extract different amounts of repayment from borrowers. The optimal bank capital structure trades …

The first part of this paper provides a historical perspective on bank risks. Five-year moving average measures of … outside New York banks from 1950-1976.We use a carefully constructed series of bank balance sheet data to compute correlations … proposed in Sharpe ("Bank Capital Adequacy, Deposit Insurance and Security Values," June 1978) to gain information about …

of deposit insurance as a function of capital-asset ratio for a bank with demand liabilities and longer term, default …

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 …