It has often been argued during the recent credit crisis that commercial banks’ involvement in investment banking … to the complete revocation of the Glass-Steagall Act in the United States and analyze whether investment banks or … – section 20 subsidiaries of – commercial banks underwrote riskier securities. We compare actual defaults of these deals for an …

We model the impact of bank mergers on loan competition, banks' reserve holdings and aggregate liquidity. Banks compete …

debt holders. We further find that credible limits to the safety net reduce risk taking of smaller banks with low charter …

Banks increasingly use short-term wholesale funds to supplement traditional retail deposits. Existing literature mainly … points to the "bright side" of wholesale funding: sophisticated financiers can monitor banks, disciplining bad but …, e.g., when banks hold mostly relationship-based small business loans. …

confidential database on banks’ bilateral exposure and employing a country-pair panel instrumental variables approach. Countries …

that banks have a common regulator. In our model, the failure of one bank can undermine the public’s confidence in the … competence of the banking regulator, and hence in other banks chartered by the same regulator. Thus depositors may withdraw funds … from their, unconnected, banks. The optimal regulatory response to this ‘panic’ behaviour can be to privately exhibit …

reduce loan granting, especially to firms or from banks with lower capital or liquidity ratios. Moreover, responding to … applications for the same loan, weak banks are less likely to grant the loan. Our results suggest that firms cannot offset the … resultant credit restriction by turning to other banks. Importantly the bank-lending channel is notably stronger when we account …