connectivity may destabilize the financial system via the bank-run channel. This is because it decreases the risk-sharing benefits … of interbank connectivity. A bank-run model features two islands that are connected via a long term debt claim. Varying … the size of this claim (interbank connectivity), I study how the decision to 'run on the bank' is affected. I run a …

public disclosure of stress test results, raise funding by promising investors a repayment. We show that competition forces … of bank failure is sufficiently large, the surplus as well. Our results in overall highlight the need to take into …

We propose an econometric model for predicting the share of bank debt held by bankrupt firms by combining a novel set … selection gives the best predictions of the risk of bankruptcy in firms holding high shares of the bank debt. …