-regulated, more fragile nonbanks. The bank-to-nonbank shift largely neutralizes total credit and associated consumption effects for …

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

Using fund-, firm- and bank-level data we investigate the investments of private equity (PE) funds in the north …-western firms than for those in the rest of the country, relative to traditional bank credit. We find that being participated by a …

that eliminates the debt bias in corporate taxation. Such a reform reduces bank leverage. This paper emphasizes a novel …, complementary channel: bank risk taking. We model the portfolio choice of banks under moral hazard and thereby highlight the … deposits, the after-tax returns on different portfolios, and future bank profits. The analysis yields two novel findings: A tax …

We isolate the direct bank-to-sovereign distress channel within the Eurozone’s sovereignbank-loop by exploiting the …-related variation. We find that the transmission of instrumented bank distress, while economically relevant, is significantly smaller … variables in previous studies. Furthermore, we show that the spillover of bank distress is significantly stronger for countries …