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

Banks are optimally opaque institutions. They produce debt for use as a transaction medium (bank money), which requires … that information about the backing assets - loans - not be revealed, so that bank money does not fluctuate in value …-insensitive assets. For the economy as a whole, firms endogenously separate into bank finance and capital market/stock market finance …

We develop a new identification strategy to evaluate the impact of the geographic expansion of bank holding company … (BHC) assets across U.S. metropolitan statistical areas (MSAs) on BHC risk. We find that the geographic expansion of bank ….e., MSAs with different industrial structures and business cycles. We do not find that geographic diversification improves loan …

Nontrivial diversification possibilities arise when a factor model describes security returns. In this paper, we … 250 securities. Second, comparatively efficient estimation procedures such as maximum likelihood and restricted maximum …

The prevalence of shirking within a large Italian bank appears to be characterized by significant regional …

domestic shares under full diversification. When stock-market data are directly used, the predicted coefficient of home bias …