One of the challenges of modern banks is providing uninsured wholesale depositors with a safe haven. We model banks deciding their own capital and liquidity levels in a forwardlooking manner to absorb an exogenous shock to their investment through interbank trading. A regulatory framework...

On 3 December EY hosted a SUERF conference on banking reform with Sir Howard Davies, the Chairman of RBS, and Dame Colette Bowe, the Chairman of the Banking Standards Board, as the two keynote speakers. Professor David Miles (Imperial College) gave the SUERF 2015 Annual Lecture on Capital and...

This paper is the first to examine the unlimited deposit insurance on noninterest-bearing transaction accounts (NIBTAs) provided by Section 343 of the Dodd-Frank Wall Street Reform and Consumer Protection Act (Dodd-Frank). During Dodd-Frank, banks had a smaller ratio of NIBTAs compared to later...

The paper evaluates the impact of a phased-in introduction of capital requirements on equity, risk-taking, and probability of default for a sample of European systemically important banks. Contrary to the case of a one-off introduction of capital requirements, this study does not find evidence...

We study how an increase to the deposit insurance limit affects households' portfolio allocation by exogenously increasing the share of safe financial assets. Using unique data that identify insured versus uninsured deposits, along with detailed information on Canadian households' portfolio...

This paper argues that creditors reflect the financial-safety-net aspect of bank lobbying, plausibly considering the connection between bank lobbying and government bailouts. Using a structural approach, I show that bank lobbying is negatively associated with the occurrence of a run-like...