information on government actions undertaken in response to bank distress. Weformulate a simple theoretical model of a banking … industry which we use to identify and constructtheory-based measures of systemic bank shocks (SBS). Using both country … have appeared in the literature. Therefore, BC indicatorsactually measure lagged government responses to systemic bank …

A rapidly growing empirical literature is studying the causes and consequences of bank fragility in present …

discipline bank behavior. By controlling for a more comprehensive set of risk/return factors, the study improves upon …

thereof. These factors have challenged the effectiveness of many of the typical tools for bank resolution. This publication … focuses on the issues raised in systemic crises, not on the resolution of individual bank problems. Based on the lessons …

We revisit the link between bailouts and bank risk taking. The expectation of government support to failing banks … creates moral hazard—increases bank risk taking. However, when a bank’s success depends on both its effort and the overall … invest prudently and so reduce bank risk taking. This systemic insurance effect will be relatively more important when …