bank issues covered bonds backed by a pool of assets that is bankruptcy remote and replenished following losses …. Encumbering assets allows a bank to raise cheap secured debt and expand profitable investment, but it also concentrates risk on …

of joint bank default. Because of counterparty risk or common exposures, bad news about one bank reveals valuable … information about another bank, triggering information contagion. When banks are subject to common exposures, information … contagion induces small adjustments to bank portfolios and therefore increases overall systemic risk. When banks are subject to …

liquidity risk, competitive banks offer demand deposits. We use global games to link the probability of a bank run to the …

Superintendent of Financial Institutions, which allows us to run simulations of bank valuations and asset prices under a set of …

region. -- Financial stability ; Central bank research ; Econometric and statistical methods …

We model bank management actions in severe stress test conditions using a game-theoretical framework. Banks update …

Bank regulation is based on the premise that risks spill over more easily from large banks to the banking system than … vice versa. On the contrary, we document that risk transmission is stronger in the system-to-bank direction. We term this … banks with positive net exposure to the system had higher default risk during the 2008 crisis, and that bank size and …