side of the model. The calibrated model possesses multiple equilibria with bank-run features, suggesting that banks can be … very fragile. We use our model to analyze proposed bank regulations. For example, our results suggest that a capital …

accounting for loan portfolios held to maturity. Marked-to-market bank assets have declined by an average of 10% across all the …-- unlike insured depositors, uninsured depositors stand to lose a part of their deposits if the bank fails, potentially giving … them incentives to run. A case study of the recently failed Silicon Valley Bank (SVB) is illustrative. 10 percent of banks …

accounting for loan portfolios held to maturity. Marked-to-market bank assets have declined by an average of 10% across all the … depositors, uninsured depositors stand to lose a part of their deposits if the bank fails, potentially giving them incentives to … run. We show that a bank’s survival depends on the market beliefs about the share of uninsured depositors who will …