-run supply of bank credit. As U.S. bond rates have fallen, the pass-through of monetary shocks to loan and deposit rates has … weakened while the spread on U.S. bank loans has risen. I build a model in which banks earn deposit and loan spreads, deposits … dampened at low rates, because deposit spreads act as a better hedge for bank equity against unexpected monetary shocks. In the …

how the transmission depends on bank balance sheets, and how this changes once policy rates become negative. We review the …

of banking sector concentration. Using a local projections framework with 2003-2023 country-level and bank-level data for …

This paper examines common regulation as cause of interbank contagion. Studies based on the correlation of bank assets … that banks have a common regulator. In our model, the failure of one bank can undermine the public's confidence in the … forbearance to the initially failing bank in the hope that it - and hence other vulnerable banks - survives. By contrast, public …

signal on bank project quality, short-term wholesale financiers have lower incentives to conduct costly monitoring, and …