We investigate two competing explanations for commercial bank distress during financial crises: liquidity shortages and …

We explore the structural drivers of bank and nonbank credit cycles using an estimated medium-scale macro model that … allows for bank and nonbank financial intermediation. We posit economy-wide aggregate and sectoral disturbances to … potentially drive bank and nonbank credit growth. We find that sectoral shocks affecting the balance sheets of entrepreneurs who …

We develop a model of bank risk-taking with strategic sovereign default risk. Domestic banks invest in real projects … their default risks through purchases of bonds. But, for high debt levels, this influence is lost since bank and government …

Shadow banking is a broad concept. A possible definition is that it comprises non-bank institutions which undertake … bank-like activities. Another characteristic is that the sector is overall less regulated. Therefore there are still …

incorporating reputational considerations; a model with delegated investment as in Diamond; one with bank liabilities serving as …

incorporating reputational considerations; a model with delegated investment as in Diamond; one with bank liabilities serving as …

reputational considerations, those with fixed costs and delegated investment, and those where bank liabilities serve as payment …

of the traditional bank business model. Specialized providers of financial services can chip away activities that do not …

bank risk taking interestingly depends on the level of interest rates …

I study positively and normatively the role of bank heterogeneity in the macroeconomy. I build an empirically … default, and endogenous entry. The framework highlights a trilemma for bank regulation: the government cannot simultaneously … banking concentration, emergence of fintech credit, targeted stabilization policies like bank-level bailouts and liquidity …