special issue of the Review of Financial Studies dedicated to “The Value of Bank Capital and the Structure of the Banking … September 2006, which was jointly organized by the Federal Reserve Bank of New York, the Wharton Financial Institutions Center …

are inversely related to the deposit ratio, bank size and the GDP growth rate. Taking economic downturns into … simulate the distributions of bank losses and financial system losses in Australia for future periods. In doing so, we quantify …

We develop a model of banking industry dynamics to study the quantitative impact of capital requirements on bank risk … taking, commercial bank failure, and market structure. We propose a market structure where big, dominant banks interact with … banks' buffer stocks of securities. We test the model using business cycle properties and the bank lending channel across …

We study how heterogeneity in banks’ asset holdings affects fragility. In the model, banks face a risk of bank runs and … sell their assets at the same time. When banks are homogeneous, their selling behaviors are synchronized, and bank runs are …

bank risk taking, commercial bank failure, interest rates on loans, and market structure. We propose a market structure … addition to aggregate shocks to the fraction of performing loans in their portfolio. A nontrivial bank size distribution arises … consistent with untargeted business cycle properties, the bank lending channel, and empirical studies of the role of …

We study how heterogeneity in banks' asset holdings affects fragility. In the model, banks face a risk of bank runs and … sell their assets at the same time. When banks are homogeneous, their selling behaviors are synchronized, and bank runs are …