We document the cyclical properties of the balance sheets of different types of intermediaries. While the leverage of … the bank sector is highly procyclical, the leverage of the nonbank financial sector is acyclical. We propose a theory of a … two-agent financial intermediary sector within a dynamic model of the macroeconomy. Banks are financed by issuing risky …

can lead to excessive leverage, maturity transformation, interconnectedness, and complexity. These vulnerabilities, when … policies that reduce the likelihood of systemic crises may do so only by raising the cost of financial intermediation in …

makes shadow banks inherently fragile. Much of shadow banking activities is intertwined with the operations of core … banking institutions and activities, discuss why shadow banks need to be regulated, and review the impact of recent reform …

public backstops. The lack of such access to sources of government liquidity and credit backstops makes shadow banks … companies, security brokers and dealers, and insurance companies. These interconnections of shadow banks with other financial …

the model, the endogenously time-varying tightness of liquidity and capital constraints generates intermediaries' leverage …

This paper studies the question of the economic scale of financial institutions. We show that banks actively smooth … of financial institutions leads to procyclical book leverage, while market leverage is nearly entirely reflective of …'s subdued growth rate relative to pre-crisis levels. Market volatility dampens the intermediary leverage cycle. We draw …

We develop a theory of financial intermediary leverage cycles in the context of a dynamic model of the macroeconomy … dynamics of the economy: the net worth and the leverage of financial intermediaries. The leverage of the intermediaries is … procyclical, owing to risk-sensitive funding constraints. Relative to an economy with constant leverage, financial intermediaries …