endogenous bank fragility and slow recovery from crises. When banks' investment decisions are not contractible, depositors form …I propose a dynamic general equilibrium model in which strategic interactions between banks and depositors may lead to … complementarities and possibly multiple equilibria: in response to an increase in funding costs, banks may optimally choose to pursue …

equilibrium setting, capital requirements and lobbying contributions are determined as the outcome of bargaining between banks and … politicians. We show that bankers and politicians agree on lobbying contributions and capital regulation that renders banks …

MBS purchase activity; and [iii] increased their leverage during QE3. Our findings are consistent with unconventional …

In this paper we analyze financial crises, and the interactions of macroprudential policy and credit. Financial crises … welfare, output and employment. Importantly for policy, systemic financial crises are typically not random events triggered by …

This paper empirically investigates the effect of government bail-out policies on banks outside the safety net. We … competitor banks for any given bank, and analyze the impact of this variable on banks' risk-taking behavior, using a large sample … of banks from OECD countries. Our results suggest that government guarantees strongly increase the risk-taking of …

insurance. Banks collect deposits and issue equity to extend defaultable loans to clean and fossil energy firms. Bank capital …, differentiated capital requirements are only necessary if banks are not perfectly diversified across sectors. Fourth, nominal …

Banking crises are recurrent phenomena, often induced by excessive bank risk-taking, which may be due to behavioral … reasons (over-optimistic banks neglecting risks) and to agency problems between bank shareholders with debt-holders and … taxpayers (banks understand high risk-taking). We test whether US banks’ stock returns in the 2007-08 crisis are related to bank …

shocks in a country with a large presence of European and U.S. banks. A softening of foreign monetary policy expands credit … supply of foreign banks (e.g., U.K. policy affects credit supply in Mexico via U.K. banks), inducing strong firm-level real … markets, both in the foreign monetary softening part (with higher credit and liquidity risk-taking by foreign banks) and in …

probability of default for a sample of European systemically important banks. Contrary to the case of a one-off introduction of … adjustment to lower leverage via an increase in equity thereby improving resilience and loss absorption capacity. The higher … gambling for resurrection, the risk-taking is driven by large and less profitable banks. The net impact on bank probabilities …