supervision and regulation. When a MNB expands internationally with subsidiaries, the MNB operates under the legislation of … left to the national regulators. An important issue is whether the decentralized approach to regulation of MNBs creates … inefficiencies and financial instability. We show that lack of international coordination of regulation towards MNB …

bank’s failure risk solely by means of liquidity requirements. However, their effectiveness can be restored if, in addition … that they are to be used to control the riskiness of banks’ asset portfolios. -- prudential regulation ; liquidity …

supervision and regulation. When a MNB expands internationally with subsidiaries, the MNB operates under the legislation of … left to the national regulators. An important issue is whether the decentralized approach to regulation of MNBs creates … inefficiencies and financial instability. We show that lack of international coordination of regulation towards MNB …

Consider a competitive bank whose illiquid asset portfolio is funded by short-term debt that has to be refinanced … of social externalities of bank failures further lowers the optimal level of transparency. Moreover, asset risk taking …

smaller CRAs and new incumbents are the increase of market share as well as reputation. Therefore, the market competition …

systemic costs of bank distress. Importantly, when public intervention capacity is constrained, private recapitalization … decisions become strategic complements, leading to equilibria with extremely high forbearance and high systemic costs of bank …