inaccuracies. Without stress-tests, the regulator cannot observe bank’s type, and sets the same requirement across banks. Stress …-testing provides a noisy signal about the banks’ types, and enables bank specific surcharges, which can improve welfare. Yet, when …

. Furthermore, some of these fi ndings strongly depend on the bank’s legal form, its size and business model, suggesting that both …

results highlight the importance of the starting level of bank capital, bank asset quality, and banks’ adjustments for the …

market risks of banks are intertwined. We highlight how coordination failure between a bank's creditors and adverse selection … in the secondary market for the bank's assets interact, leading to a vicious cycle that can drive otherwise solvent banks … to illiquidity. Investors' pessimism over the quality of a bank's assets reduces the bank's recourse to liquidity, which …

fragility of banks we use the probability-of-default of banks as a proxy for bank failure. After analyzing data collected from …

in the New Zealand banking market. We find seven categories of switching costs are perceived to exist by bank customers … banks despite a desire to do so. We then consider possible regulatory responses to bank switching costs and recommend three … actions for regulators. The recommendations include regulators acknowledging the existence of bank switching costs and …

analysis also provides a new rationale for the countercyclical elements of capital requirements.This version updates the Bank …

; coordination of micro-prudential supervision and bank resolution)? It is evident from the research undertaken in this paper that …