that due to its size, a large bank receives a more precise signal about the overall liquidity development in the banking … sector. In an upcoming liquidity shortage this large bank can exploit its informational advantage in the spot money market by … rationing liquidity. Using forward contracts, the large bank can credibly commit not to squeeze small banks in the event of a …

signal on bank project quality, short-term wholesale financiers have lower incentives to conduct costly monitoring, and …

Our concern in this paper is two-fold: first to see whether the determinants of bank distress and failure have been any …-weighted counterparts as predictors, despite the focus on the later in the Basel framework. This paper examines bank distress within a large … predict bank failures and draw inferences about the stability of contributing bank characteristics. Our models incorporate …

The recent crisis has underlined the importance of sound bank liquidity management. In response, regulators are … authors analyse the impact of liquid asset holdings on bank profitability for a sample of large U.S. and Canadian banks … that this relationship varies depending on a bank's business model and the state of the economy. These results are …

Banks hold liquid and illiquid assets. An illiquid bank that receives a liquidity shock sells assets to liquid banks in …

funds and the optimal policy of a central bank in response to liquidity shocks. We show that, when confronted with a … distributional liquidity-shock crisis that causes a large disparity in the liquidity held by different banks, a central bank should … erodes financial stability by increasing the probability of bank runs. …

provide evidence in favor of the bank capital channel theory. Banks holding less regulatory capital and less interbank …

-European Bank mergers. In this paper we identify other more fundamental reasons for a limited degree of cross-country integration in …-border bank mergers. The paper derives the impact of different underlying stochastic structures on the optimal structure of cross … regional bank mergers. Imposing a symmetry restriction on the underlying stochastic structure of liquidity shocks we find that …