controls for bank and time random effects. The longer a bank was entered into the deposit insurance system, the greater was its …

exogenous factors beyond the control of bank managers, however, information disclosure may increase banking sector fragility, as …

: namely, the avoidance of major macroeconomic disruption as a result of bank failures. …

that the social benefits of bank monitoring must for incentive reasons be shared between depositors and banks. Consequently …, socially too few deposits are made in equilibrium. Deposit insurance – or, equivalently, bank recapitalization – corrects this …

This paper studies the strategic interaction between a bank whose deposits are randomly withdrawn, and a lender of last … resort (LLR) that bases its decision on supervisory information on the quality of the bank’s assets. The bank is subject to a …. Moreover, when the LLR does not charge penalty rates, the bank chooses the same level of risk and a smaller liquidity buffer …

costs, through a gradual adjustment of supervision effort to the bank's financial health. We also consider preventive …