, focusing on short-term gains but risking further losses if rates rose. Instead of hedging the market value risk of bank asset … fluctuations. More vulnerable banks were more likely to reclassify. Extending Jiang et al.'s (2023) solvency bank run model, we …

The adoption of the “Bank ... …

that the relative sensitivity of households to bank capitalization diminished markedly with the introduction of an …

-taking behaviour in the last decade, which might be offset by more stringent instruments targeting borrowers, bank capital and banks … effective instruments to counteract the effects of (extreme) scenarios of persistent monetary accommodation. Accounting for bank …

We investigate how a change in regulatory oversight affects bank risk. Using the passage of the Economic Growth …, Regulatory Relief, and Consumer Protection Act of 2018 as a setting, and a sample of bank holding companies (BHCs) over the … oversight. In addition to increasing individual bank risk, affected BHCs experience heightened systemic risk. These BHCs also …

theoretical models' predictions of a trade-off between liquidity buffers and bank opacity that exacerbates funding liquidity risk …

make bank deposits endogenously long-term. Capital regulation addresses deposit dilution but is subject to a time … significantly impacts optimal bank capital regulation. We examine how capital regulation stringency changes across different …

us to contribute to several ongoing debates between proponents and opponents of stricter bank regulation. We show that … aggregate risk increases. Our results, therefore, support the views of opponents of stricter bank regulation when aggregate risk … reduce or eliminate depositor subsidies to constrain bank leverage, our analysis also demonstrates that depositor subsidies …