ability of a bank to restructure the borrower's firm in the case of distress, the possibility to appropriate private benefits …

The regulatory framework of Basel III features joint requirements on bank capital and liquidity. I study such … requirements by developing a general equilibrium model with bank runs in a global game framework. The model highlights the role of … noisy information for studying liquidity and shows that bank runs are inevitable. Risk shifting induces excessive leverage …

assets by secondary market investors. This hampers a troubled bank's recourse to liquidity and increases the incidence of … bank runs, potentially unleashing a wave of investor pessimism that can drive otherwise solvent banks into illiquidity. We … quantify this contagion channel in the context of the Bank of Canada's model of the Canadian banking system and a stress …

An individual bank can put the whole banking system at risk if its losses in response to shocks push losses for the … generalisation of the Shapley value; a concept originating in co-operative game theory. An important feature of this approach is that …

intermediate socially optimal level of bank competition. We provide a novel theory of bank opacity. The cost of opacity is more … runs, and face a threat of entry. Higher competition increases deposit rates and bank fragility, resulting in an … is to deter entry of competitors, which increases bank charter value. Banks can be excessively opaque, motivating …