This paper provides the first empirical evidence that bank regulation is associated with cross-border spillover effects … different localities across 16 countries. We find that lower barriers to entry, tighter restrictions on bank activities, and … higher minimum capital requirements in domestic markets are associated with lower bank lending standards abroad. The effects …

We develop a model in which financial intermediaries hold liquidity to protect themselves from shocks. Depending on … parameter values, banks may choose to hold too much or too little liquidity on aggregate compared with the socially optimal … underinsurance against liquidity choice. The model therefore provides a unified framework for thinking, on the one hand, about policy …

efficiency of the liquidity insurance that banks' deposit contracts provide to households that are subject to idiosyncratic … liquidity shocks. But in contrast to these approaches we assume spacial monopolistic competition among banks. Since monopoly … rents already. Thus our results suggest that in the bank-dominated financial system of Germany, in which banks intensely …

Diamond and by Fecht, we use a model in which the degree of liquidity insurance offered to households through banks' deposit … not sufficiently restrain monopoly rents already. Thus, our results suggest that in Germany's bank-dominated financial … welfare because it only reduces risk sharing. In contrast, in the U.S. banking system, where there is less competition for …

proposal would require that a small fraction of each MMF investor's recent balances, called the minimum balance at risk (MBR …, when the risk of MMF losses is remote, subordination would have little effect on incentives. We use empirical evidence …

We construct a model in which bank capital regulation and financial innovation interact. Innovation takes the form of … divergence of private and social interests in future profits. Capital regulation lowers bank profits and may induce banks to … pooling and tranching of assets and the creation of separate structures with different seniority, different risk, and …

funds that offer private money-like assets with features similar to those of bank deposits. Hence, they are vulnerable to … runs that arise from liquidity transformation and from sudden changes in investor perceptions of the funds' ability to …