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 …

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

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 …

To address the moral hazard problem that can motivate bank executives to take excessive risks and to fail to raise … regulatory capital requirements and well before its contingent convertible securities convert into equity. The Swiss Bank UBS has … compensation if the bank's regulatory capital ratio falls below 7.5%, and its contingent convertible debt is set up to convert into …

-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 …

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 …

across banks. In particular, by paying out dividends, a bank transfers value to its shareholders away from its creditors, who … in turn are other banks. This way, one bank's dividend payout policy aects the equity value and risk of default of otther … banks. When such negative externalities are strong and bank franchise values are not too low, the private equilibrium can …