We develop a structural model for valuing bank balance sheet components such as the equity and debt value, the value … for the government when the bank is operated by private shareholders including the present value of a possible future … the bank. In this case, the shareholders lose part (or all) of the capital that they hold in the bank, the creditors lose …

of bank failures. We find that riskadjusted premiums reduce moral hazard, enabling the policymaker to increase deposit … insurance coverage by 3 percentage points and decrease the share of expected annual bank failures from 0.66% to 0.16%. The model …

This paper examines common regulation as cause of interbank contagion. Studies based on the correlation of bank assets …. - Contagion ; Reputation ; Bank Regulation … that banks have a common regulator. In our model, the failure of one bank can undermine the public's confidence in the …

decompose the welfare effects of bank capital regulation to demonstrate the effects of exuberance and its interaction with … evidence on the relationship between bank capital and risk-taking. Finally, I investigate the sensitivity of these insights …

has partial control over bank regulation it can exercise regulatory lenience. Two, the Fed's stronger output orientation …From the onset of the 2007-2009 crisis, the Federal Reserve and the European Central Bank have aggressively lowered … procyclical capital regulation. - Monetary policy ; capital regulation ; crisis …

how to treat sovereign exposures in bank regulation. Our contribution is to model endogenous sovereign portfolio …

How to conduct macro-prudential regulation? How to coordinate monetary policy and macro-prudential policy? To address …

The investment fund sector, the largest component of the non-bank financial system, is growing rapidly and the economy …. Funds invest in corporate bonds and may hold liquidity in the form of bank deposits to meet investor redemption requests …. Without regulation, funds hold insufficient deposits and must sell bonds when hit by large redemptions. Bond liquidation is …