banks …

We propose a model of asset encumbrance by banks subject to rollover risk and study the consequences for fragility … investment funded by cheap long-term secured debt against the cost of greater fragility due to unsecured debt runs. We derive … and revenueneutral Pigouvian taxes can mitigate the risk-shifting incentives of banks. …

In summer 2011, elevated sovereign risk in Eurozone peripheral countries increased the solvency risk of Eurozone banks … (i) by being lender of last resort to banks via the long-term refinancing operations (LTRO), ECB temporarily reduced … funding pressure for banks, but did not help to contain sovereign risk. In fact, banks of the peripheral countries used the …

We show that nonbanks (funds, shadow banks, fintech) affect the transmission of monetary policy to output, prices and …, borrowerlender relationships and Gertler-Karadi monetary policy shocks. Higher policy rates shift credit supply from banks to …

We show that negative monetary policy rates induce systemic banks to reach-for-yield. For identification, we exploit … the 26 largest euro area banking groups. Banks with more customer deposits are negatively affected by negative rates, as … higher returns. Effects are stronger for less capitalized banks, private sector (financial and non-financial) securities and …

Banks are growing ever larger compared to their national economies. We show that increases in relative bank size … (measured as a bank's liabilities divided by national GDP) are linked to banks displaying higher tail risk. This effect is not … entirely due to risk channels that disproportionately expose relatively large banks to systematic tail risks, sovereign risks …

options to address this 'doom loop' in which the government may need to raise debt to recapitalise banks, and an increase in … bias in banks sovereign bond holdings by reducing excessive exposure to domestic sovereigns has only limited benefit in …

We show that negative monetary policy rates induce systemic banks to reach-for-yield. For identification, we exploit … the 26 largest euro area banking groups. Banks with more customer deposits are negatively affected by negative rates, as … higher returns. Effects are stronger for less capitalized banks, private sector (financial and non-financial) securities and …

We present a model in which shadow banking arises endogenously and undermines marketdiscipline on traditional banks …. Depositors' ability to re-optimize in response to crisesimposes market discipline on traditional banks: these banks optimally … on the 2008 financial crisis in theUnited States, during which shadow banks experienced a sudden dry-up of funding …