This paper empirically investigates banks' investment allocations over the recent business cycle. I identify … the pre-recession period, banks lend 38 percent of incremental deposits; however, during the downturn, banks favor liquid … assets and lending allocations fall to 22 percent. Banks with low risk tolerance or less access to liquidity are particularly …

This paper investigates the incentives for banks to bias their internally generated risk estimates. We are able to … by low-capital banks to improve regulatory ratios. At the portfolio level, the difference in borrower probability of … credits. In addition, we find that low-capital banks' risk estimates have less explanatory power than those of high …

Following a scarcity of dollar funding available internationally to banks and financial institutions, in December 2007 … banks. These central banks had the capacity to use these swap facilities to provide dollar liquidity to institutions in … research, as well as more descriptive accounts, suggests that the dollar swap lines among central banks were effective at …

network. We estimate that the impairment of any of the five most active U.S. banks will result in significant spillovers to … other banks, with 38 percent of the network affected on average. The impact varies and can be larger on particular days and … in geographies with concentrated banking markets. When banks respond to uncertainty by liquidity hoarding, the potential …

, national banks raise overdraft fees relative to state-chartered banks in affected states. However, banks in affected states …

Not very. We find that weather disasters over the last quarter century had insignificant or small effects on U.S. banks … offsets losses and actually boosts profits at larger banks. Local banks tend to avoid mortgage lending where floods are more …

trillion in response to the COVID-19 pandemic. However, whereas banks' reserves at the Federal Reserve have decreased, the … diff-in-diff approach. By exploiting a temporary change in the computation of banks' Supplementary Leverage Ratio (SLR …) implemented in 2020-21, we show that banks' balance sheet costs incentivize them to push deposits toward MMFs and to reduce their …

, which are free from CRA obligations, to banks in need of CRA-eligible mortgages. Our findings underscore the pitfalls of a …