in the demand for intraday credit and, ultimately, a disruption of payments. Additionally, we find that when a bank is … identified as vulnerable to failure and other banks choose to cancel payments to that bank, there are systemic repercussions for …

channel, one bank's capital policy affects the equity value and risk of default of other banks. In a model where such … externalities are strong, bank capital takes on the attribute of a public good, where the private equilibrium features excessive … implications of the model with observed bank behavior during the crisis of 2007-09 …

forfeited if the bank does not meet its capital requirements. This memo underscores the benefits of contingent deferred …

hypothetical exercise with fixed balance sheet ratios, we find that a complete suspension of bank dividends in 2020 during the … Covid-19 pandemic would have added, under different stress scenario, an additional US$ 0.8–1.1 trillion of bank lending …

-funded capital injections. However, on closer inspection the composition of bank capital shifted radically from one based on common …

behavior. By paying out dividends, a bank transfers value to its shareholders away from creditors, among whom are other banks …. This way, one bank's dividend payout policy affects the equity value and risk of default of other banks. When such negative … externalities are strong and bank franchise values are not too low, the private equilibrium can feature excess dividends relative to …