This paper develops a new approach for conceptualizing and measuring the risk associated with bank failure. The price …), representing the price of the financial risk that exists ex-ante (ie, before a bank fails). This can be interpreted as the cost …. If that were to happen, and if net losses were to be 5-10 per cent of bank liabilities the total cost could be $16 …

estimated New Keynesian model with a bank. A key dimension of policy in the crisis was massive government support for banks … bank asset losses, of government support for banks, and other fiscal stimulus measures, in the EA. Our results suggest that …

intervention have stronger effects beyond borders. We provide a model of international contagion allowing for bank bailouts. While …

Der deutsche Bankensektor ist durch die internationale Finanzkrise schwer getroffen. Auf Deutschland und die im Februar …

In August 2007 the United Kingdom experienced its first bank run in over 140 years. Although Northern Rock was not a … particularly large bank (it was at the time ranked 7th in terms of assets) it was nevertheless a significant retail bank and a … outside the bank as depositors rushed to withdraw their deposits. There was always a fear that this could spark a systemic run …

-out unit, a so-called bad bank. The key element of the plan is the valuation of troubled assets at their current market value … recapitalize the good bank by taking an equity stake in it. In extreme cases, this would mean a takeover of the bank by the …. A clear emphasis that the government stake is temporary would also be necessary. The government would cover the bad bank …

This paper examines common regulation as cause of interbank contagion. Studies based on the correlation of bank assets … that banks have a common regulator. In our model, the failure of one bank can undermine the public’s confidence in the … forbearance to the initially failing bank in the hope that it - and hence other vulnerable banks - survives. By contrast, public …