lending. We find that the guidance primarily impacted large, closely supervised banks, but only after supervisors issued … more lax lending policies than banks, we unveil important evidence that nonbanks increased bank borrowing following the … issuance of guidance, possibly to finance their growing leveraged lending. The guidance was effective at reducing banks …

Banks face two different kinds of moral hazard problems: asset substitution by shareholders (e.g., making risky … risk in which all banks choose inefficiently high leverage to fund correlated assets and market discipline is compromised …

In August of 2007, banks faced a freeze in funding liquidity from the asset-backed commercial paper (ABCP) market. We … investigate how banks scrambled for liquidity in response to this freeze and its implications for corporate borrowing. Commercial … banks in the United States raised deposits and took advances from Federal Home Loan Banks (FHLBs). In contrast, foreign …

policies imposed during the Covid-crisis on US banks as a natural experiment. Using a highfrequency differences …-in-differences empirical strategy, we show that, when share buybacks are banned and dividends restricted, banks' equity prices fall while their …, banks that are ex-ante more reliant on share buybacks than dividends in their payout policies, decrease risk-taking relative …

A major lesson of the recent financial crisis is that the interbank lending market is crucial for banks that face … distributional liquidity-shock crisis that causes a large disparity in the liquidity held by different banks, a central bank should … policy should be rethought. In addition, we show that, during an aggregate liquidity crisis, central banks should manage the …

Does the federal funds rate respond to shocks when aggregate reserves are in the trillions of dollars? Has banks …