effect varies across banking crises, market crises, and normal times that occurred in the U.S. over the past quarter century … all times (during banking crises, market crises, and normal times). Second, capital enhances the performance of medium and … large banks primarily during banking crises. Additional tests explore channels through which capital generates the …

predict banking crises and their response to US monetary policy shocks. We find that averaging across the indicators of …

based on their ability to capture tail risk for economic activity and to predict banking and currency crises. We find that … anticipating banking crisis, and is therefore better suited for financial stability. …