system. Whereas the traditional view on regulation focuses on capital as a buffer against exogenous risks, our approach … boundary problem in entity-based financial regulation and provides a motivation for substantially lower levels of leverage …

The UBS- Credit Suisse (CS) merger in March 2023, one of the biggest banking unions in history, was an emergency rescue … deal engineered by Swiss authorities to avoid more market-shaking turmoil in global banking. The merger resulted in a …

Bank regulation is based on the premise that risks spill over more easily from large banks to the banking system than … volatility and overall profit volatility. We argue that the current bank supervision objectives can be achieved more efficiently … if regulation focuses on reducing such net exposures, rather than buffering the default risks arising from them. …

This paper argues that bank runs on the shadow banking system was a significant factor in the spread of subprime losses …