in liquidity risk and expected liquidity needs for each bank and for the banking system. Large mergers tend to increase …We model the impact of bank mergers on loan competition, banks' reserve holdings and aggregate liquidity. Banks compete … expected aggregate liquidity needs, and thus the liquidity provision by the central bank. Comparative statics suggest that a …

-merger financial performance. We find that, on average, bank mergers in the European Union resulted in improved return on capital. By … acquisitions (M&As), differences of merging partners in their loan and credit risk strategies are conducive to a higher performance …

asymmetries within the bank combined with fixed wages. Two kinds of inefficiencies arise in equilibrium: the credit officer either … bank accepts the information asymmetries, is called the centralized structure. Under decentralized structure the bank … finance more small firms, but incur higher costs than centralized ones. Small banks are interpreted as a bank with relatively …

The paper analyses the relationship between deposit insurance, debt-holder monitoring, and risk taking. In a stylised …-deposit creditors. Testing the model using EU bank level data yields evidence consistent with the model, suggesting that explicit … debt holders. We further find that credible limits to the safety net reduce risk taking of smaller banks with low charter …

multinational bank. We take a political economy approach to regulation and assume that supervisors maximize the welfare of their own …This paper analyzes cooperation between sovereign national authorities in the supervision and regulation of a … the countries are perfectly aligned, Þrst best closure regulation cannot be implemented; (2) the more aligned the …

Using a unique dataset of the Euro area and the U.S. bank lending standards, we find that low (monetary policy) short … securitization activity, weak supervision for bank capital and too low for too long monetary policy rates. Conversely, low long …

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