We develop a dynamic model of banking to assess the effects of liquidity and leverage requirements on banks' insolvency … risk. In this model, banks face taxation, flotation costs of securities, and default costs and maximize shareholder value …

money center banks). The “intermediary depiction model” that the SEC has always used is inadequate in financial innovation …

Public Sector Banks (“PSB firms”) to the new bankruptcy environment in terms of their borrowing decisions. Our results …

. We develop a repeated game in which banks come across each other frequently, allowing them to threaten a punishment in … case of free riding. As the number of lending banks grows, the chance of meeting again a bank and of being punished for … restructuring probability increases with the number of banks up to a threshold - three banks - beyond which coordination problems …