regulatory requirements. Our analytic characterization of the bank policy choices shows that imposing solely liquidity … requirements leads to lower bank losses in default at the cost of an increased likelihood of default. Combining liquidity … requirements with leverage requirements reduces drastically both the likelihood of default and the magnitude of bank losses in …

Using administrative data on deposits and loans of every Norwegian with every Norwegian bank, we show that an existing … deposit account makes a household more likely to hold deposits at the same bank later despite better alternatives and more …

bank's financing structure. In our model the bank's assets consist of illiquid loans and liquid reserves and are financed … to an exogenous rollover risk. We show that the use of repos inflicts two types of indirect (“shadow”) costs on the bank …'s shareholders: first, it induces the bank to maintain higher liquid reserves in order to alleviate the additional default risk …

evidence that supervisory scrutiny associated to stress testing has a disciplining effect on bank risk. We find that banks that …

. Although global bank lending is often reported to amplify the international credit cycle, we show that foreign banking acted as …

Portuguese banks to investigate how these inspections affect banks' future lending decisions. We find that an inspected bank …