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

. Further, the paper proposes a simple metric, which is used to identify contagion from one bank to another and identify …

-deposit creditors. Testing the model using EU bank level data yields evidence consistent with the model, suggesting that explicit …

multinational bank. We take a political economy approach to regulation and assume that supervisors maximize the welfare of their own … interests are, the higher is welfare; (3) the bank can allocate its investments strategically across countries to escape closure. …

Based on a unique data set referencing exposures on single name credit default swaps (CDS) on European reference … importance of some non-dealer/non-bank participants belonging to the shadow banking system. …