The goal of this paper is to provide a framework to analyze the effectiveness of bank coalition formation in response … the kind of insurance mechanism provided by a specific type of bank coalition allows society to completely prevent any … shock that is not too big. If the shock is relatively large, then a private bank coalition will be unable to completely …

bailout by the government, the healthy bank can accept or not the bail-in operation. The role of the regulator is to select …We propose a model with incomplete information where a distressed bank asks its creditor, a healthy bank, to reduce its … debt. Given the information disclosed by the regulator about the asset quality of the distressed bank and its possible …