models with different degrees of transparency in the banking sector. Our main result is that the bail-out policy … other banks' margins. In contrast, the effects on the protected bank's risk taking and on welfare depend on the transparency …

decisions to agents, whose actual decision rules are opaque. We show that the responder will benefit from strategic opacity …, even with bilateral delegation. The incomplete information created by strategic opacity choices does not lead to …

This paper investigates how balance sheet opacity affects banks' risk-taking behavior. We measure bank balance sheet … opacity according to two metrics: the ratio of available-for-sale (AFS) securities and the ratio of off-balance sheet items …. We show that balance sheet opacity is positively correlated with realized bank risk. Specifically, banks with more AFS …