We study the stability of the banking system after a mortgage shock when a discretionary bailout policy is applied … the alternatives for most shock/bailout pairs. The medium-sized banks policy performs the worst and may be feasible only … for a small number of low shock/low bailout probability pairs. We identify a threshold level after which the bailout costs …

recommended that the central bank distinguish between banks' bailout strategy and monetary policy so that the banks focus on …This paper investigates the effects of bank liquidity needs on the monetary authority's reaction. Over the period … efficiencies of the Tunisian central bank interventions. It is found that in Tunisia, the bank liquidity need is in some way …