Most analyses of banking crises assume that banks use real contracts. However, in practice contracts are nominal and … this is what is assumed here. We consider a standard banking model with aggregate return risk, aggregate liquidity risk and … idiosyncratic liquidity shocks. We show that, with non-contingent nominal deposit contracts, the first-best efficient allocation can …

-merger profitability of targets, a decrease in the size of acquirers and a decreasing share of transactions in which banks are acquired by … other banks. Other merger properties, including the size and risk profile of targets, the geographic overlap of merging … banks and the stock market response of rivals appear unaffected. The evidence suggests that the strengthening of merger …

two to be unified. With all the liquidity problems in interbank markets that have occurred during the current crisis …

a lack of opportunities for banks to hedge aggregate and idiosyncratic liquidity shocks, the interbank market is …We develop a simple model of the interbank market where banks trade a long term, safe asset. We show that when there is … banks stop trading with each other, can be a feature of the constrained efficient allocation if there is sufficient …

argue that while traditional financing channels, including financial markets and banks, provide significant sources of funds …