bank failures. The gains from acquiring assets at fire-sale prices make it attractive for banks to hold liquid assets. The … resulting choice of bank liquidity is counter-cyclical, inefficiently low during economic booms but excessively high during … ex post, they affect bank liquidity in subtle ways: Liquidity support to failed banks or unconditional support to …

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 …

Since the conference version of this report in February 2011, bank stress tests have been almost continuously in the …

suggests that although bank lending contracted during the crisis, bond financing actually increased to make up much of the gap …

suggests that although bank lending contracted during the crisis, bond financing actually increased to make up much of the gap …

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 …