locations of large-bank branches have demographics typically associated with greater financial sophistication, large-bank …

The majority of bank liabilities are deposits typically not withdrawn for extended periods. We propose a dynamic model … effects on bank dynamics. Interest rate cuts produce delayed increases in bank risk which are stronger in low rate regimes …. Deposit insurance can exacerbate the deposit dilution and amplify the increase in bank risk …

We study a bank run in India in which private bank branches experience sudden and considerable loss of deposits that … on bank-firm relationships and branch balance sheets. The flight to safety is not a flight to quality. Lending shrinks …

Bank-created money, shadow-bank money, and Treasury bonds all satisfy investors' demand for a liquid transaction medium … extent to which they are substitutes, and the amount of liquidity per unit delivered by each asset. Treasury bonds and bank …. Our results on the imperfect substitutability of bank and shadow-bank money also inform analyses of the coexistence of the …

that the U.S. Postal Savings System played in commercial bank closures during the Great Depression. The system offered …

Interest in central bank digital currencies (CBDCs) has been burgeoning with 134 countries now exploring its … CBDCs and existing digital payment methods, as well as the implications of increased CBDC usage on traditional bank deposits … substitution effect, bolstering CBDC adoption. Furthermore, an uptick in CBDC usage is associated with a notable decline in bank …

Motivated by the regional bank crisis of 2023, we model the impact of interest rates on the liquidity risk of banks … valuable if depositors remain in the bank. This creates run incentives for uninsured depositors. We show that a run equilibrium … the bank. The liquidity risk of the bank thus increases with interest rates. We provide a formula for the bank's optimal …

We use the term structure of bank CD rates to examine whether maturity-transformation risk is priced into the rates … banks offer customers. We find that depositors pay a significant cost for the liquidity provided by bank deposits. This cost …

macroeconomic and bank regulatory reform. Bank regulatory policy promoted privatization, financial liberalization, and free entry …. Argentina's bank regulatory system now is widely regarded as one of the two or three most successful among emerging market …

Is bank capital structure designed to extract deposit subsidies? We address this question by studying capital structure … banks finance themselves primarily with short-term debt and originate long-term loans. However, shadow bank debt is provided … primarily by informed and concentrated lenders. (4) Shadow bank leverage increases substantially with size, and the …