A bank panic is an expectation-driven redemption event that results in a self-fulfilling prophecy of losses on demand … surprisingly di¢ cult to generate bank panic equilibria if one allows for a plausible degree of contractual flexibility. A common … minimum scale requirement. With this simple and empirically-plausible modification to the standard model, we find that bank …

; ii) the impact of regulation; and iii) how bank closures exacerbated the post-war bust. The boom encouraged new bank … bank portfolios, while higher minimum capital requirements dampened the effects. Banks that responded most aggressively to … the asset boom had a higher probability of closing in the bust, and counties with more bank closures experienced larger …

address liquidity and solvency crises has been patchy and inconsistent, with no clear distinction between the two; in … specialized ILLR facilities to address problems of liquidity, adjustment, and debt restructuring in a focused but robust way as …