Theory suggests that in the face of fire sale externalities, banks have incentives to overinvest in order to issue … prevalence of private insurance in the era preceding central banks and deposit insurance, their subsequent disappearance, as well …

US) investment banks and their subsequent, in most cases, bail-out by public funds – and on the real sector of the … (and in particular banking) crises (under Section 1); discusses the structural vulnerability of banks to some financial …

central bank's reaction to liquidity stress gives banks incentives to invest in excessive liquidity transformation, triggering …

Commercial banks were lea ... …

operating firms has failed to return to normal levels. One explanation suggested is that banks still lack confidence because … they need time to adjust to the new environment. Another is that the reduced flow of credit reflects banks' rational … the prospects of operating firms are interdependent, banks' decisions on whether to lend to a given operating firm depend …