regulatory requirements. Our analytic characterization of the bank policy choices shows that imposing solely liquidity … requirements leads to lower bank losses in default at the cost of an increased likelihood of default. Combining liquidity … requirements with leverage requirements reduces drastically both the likelihood of default and the magnitude of bank losses in …

because it reflects special liquidity benefits of bank debt. Even aside from neglecting the systemic damage to the economy …

it reflects special liquidity benefits of bank debt. Even aside from neglecting the systemic damage to the economy that …

We develop a dynamic structural model of bank behaviour that provides a microeconomic foundation for bank capital and …

This paper examines the welfare implications of bank capital requirements in a general equilibrium model in which a … of minimum Tier 1 capital requirement is 8%, greater than that prescribed by both Basel II and III. Increasing bank …

We develop a structural model for valuing bank balance sheet components such as the equity and debt value, the value … for the government when the bank is operated by private shareholders including the present value of a possible future … the bank. In this case, the shareholders lose part (or all) of the capital that they hold in the bank, the creditors lose …

The introduction of bail-in resolution powers to impose the costs of a large bank's failure on its creditors (rather … fundamental conundrum remains in the legal regime: it is unclear who should hold bank capital that is subject to bail-in. This …

examines the theoretical and empirical literature on bank liquidity creation. The focus is on the economics of bank liquidity …