How does information management and control affect bank stability? Following a national bank holiday in 1933, New York … state bank regulators suspended the publication of balance sheets of state-charter banks for two years, whereas the national …-charter bank regulator did not. We use this divergence in policies to examine how the suspension of bank-specific information …

Prior to the Great Depression, regulators imposed double liability on bank shareholders to ensure financial stability … mitigating bank risks and providing a safety net for depositors before and during the Great Depression. We first develop a model … that demonstrates two competing effects of double liability: a direct effect that constrains bank risk taking as a result …