good lending opportunities are in short supply, so that banks have to compete for projects. In such a setting, borrowers … may demand that banks commit to monitoring by requiring that they use some of their own capital in lending, thus creating … an asset market-based incentive for banks to hold capital. Borrowers can also provide banks with incentives to monitor by …

with banking and insurance sectors, we show that credit risk transfer can be beneficial when banks face uniform demand for …

insurance sector can cause the current value of banks' assets to be less than the current value of their liabilities so the … banks are insolvent. In contrast, if historic cost accounting is used, banks are allowed to continue and can meet all their …

We examine whether foreign-owned and government-owned banks in Central and Eastern Europe reacted differently during a … banks for the period 1994- 2010. Our analysis shows that foreign banks provided credit during domestic banking crises in … host countries, while government-owned banks contracted. In contrast, foreign-owned banks reduced their credit base during …

Banks are intrinsically fragile because of their role as liquidity providers. This results in under-provision of … liquidity. We analyze the effect of government guarantees on the interconnection between banks' liquidity creation and … likelihood of runs in a model of global games, where banks.and depositors' behavior are endogenous and affected by the amount and …

. Specifically, banks originating from a country that has lower level of trust tend to have lower interbank borrowing. Using a … the network structure of interbank markets. Core banks acting as interbank intermediaries in the network are more …

are also usually associated with distortions in banks’ risk taking decisions. We build a model to analyze these trade … banks to take more risk, which in turn might lead to an increase in the probability of a run. Second, guarantees against …. Finally, there are cases where following the introduction of guarantees banks take less risk than would be optimal. …

We examine whether foreign-owned and government-owned banks in Central and Eastern Europe reacted differently during a … banks for the period 1994- 2010. Our analysis shows that foreign banks provided credit during domestic banking crises in … host countries, while government-owned banks contracted. In contrast, foreign-owned banks reduced their credit base during …