theories to analyze the particular environment of banking. In recent years, the empirical modeling of bank technology and the … reflect the unique nature and role of banking in modern economies. This chapter gives an overview of two general empirical …

The unique capital structure of commercial banking - funding production with demandable debt that participates in the … economyś payments system - affects various aspects of banking. It shapes banks ́comparative advantage in providing financial … liabilities to reduce the probability of bank runs. These aspects of banking affect a bankś choice of risk vs. expected return …