which banks are to be shut down before they can go bankrupt, and (ii) a loss allocation – or bailout – decision of who pays … a decentralized way. In our benchmark model the two countries always agree on a centralized regulation policy. In … contrast, bailout policies are centralized only when international spillovers from cross-border bank ownership are strong, and …

Commission to review bailout plans and condition their implementation. Section 2 then shows how the Commission attempted to … distorting effects resulting from the implementation of bailout plans. In closing, Section 4 questions some of the competition …