We use the results of the ECB's Comprehensive Assessment to evaluate the importance of bank business model on risk assessment and the persuasive effectiveness of different supervisory styles on banks' recapitalization. Our analysis reveals inconsistencies in the information content provided by...

This article critically reviews the 2023 banking crisis with the benefit of two years of hindsight. We highlight seven facts that depart from the standard account of the crisis that has developed. We describe the crisis as a reaction to bank business models that focused on providing banking...

We examine the impact of the U.S. withdrawal from the Paris Agreement on the relationship between climate risk and systemic risk of U.S. global banks. We find that after 2017, investors stopped pricing climate risk into U.S. systemic risk directly, consistent with domestic investors expecting...

We examine the saving behavior of banks' retail customers. Our unique dataset comprises the contract and cash flow information for approximately 2.2 million individual contracts from 1991 to 2010. We find that contractual rewards, i.e., qualified interest payments, and government subsidies,...

This study develops on the status quo in relation to the assessment of resolvability of credit institutions and banking groups in the Banking Union and the removal of substantive impediments to their resolvability under the EU legal framework governing banking resolution, as in force, taking due...

We study how competition for shadow money impacts banking stability. In our model, bankscompete for insured depositors and uninsured shadow money investors and default endogenously.We estimate and calibrate our model to the Chinese banking sector and we find that shadow money investors are...

We construct a new measure of deposit insurance generosity for many countries, empirically model the exogenous international influences on the adoption and generosity of deposit insurance and use a novel econometric method to explore the causal chain from the expansion of deposit insurance...

We examine the effectiveness of bank regulation in the light of creditor diversity. Our theory suggests a bank can increase its value by matching the riskiness of its securities and the risk tolerance of its diverse creditors. Even a well-capitalized bank might not eliminate financial fragility...

We model dynamic bank capital structure under three optimally-designed regulatory regimes dealing with potential default { bailout, where government provides capital; bail-in, using private-sector funds; and no regulatory intervention, allowing failure. Only under optimally designed bail-in do...

This study used financial indicators and bankruptcy scores to analyse financial health of 14 publicly traded G-SIBs headquartered in Western countries. It also applied the event-study methodology to detect how market discipline could have been affected by the request for the bailout of Banca...