Central bank policy suffers from time-inconsistency when facing a banking crisis : A bailout is optimal ex post but ex … reputation for the central bank are high, monitoring effort by the banker is important in improving returns, and when the cost of …

International financial linkages, particularly through global bank flows, generate important questions about the …. Empirical tests of the trilemma support this view that global bank effects are heterogeneous and that the primary drivers of …

endogenously determined. Although the microeconomics of the bank behaviour is quite simple, credit and money as well as bonds …

use the model to look at monetary policy and show that allowing banks to sell long-term assets to the central bank after a …

behavior and risk sensitivity of a risk-neutral bank. The bank is exposed to credit risk and may use credit default swaps (CDS …) for hedging purposes. Regulation is found to induce the risk-neutral bank to behave in a more risk-sensitive way: Compared …. Under the Substitution Approach in Basel II (and III) a risk-neutral bank will over-, fully or under-hedge its total …

such cooperative practices. There are two adjacent markets with one savings or cooperative bank being focused on each one … and one private commercial bank serving both. We find that abolishing regional demarcation indeed increases total loan … shields the private commercial bank from aggressive competition by these banks. …