bank. We show that, when confronted with a distribu- tional liquidity-shock crisis that causes a large disparity in the … liquidity held among banks, the central bank should lower the interbank rate. This view implies that the traditional tenet … prescribing the separation between prudential regulation and mon- etary policy should be abandoned. In addition, we show that …

but imperfect signal on bank project quality (e.g., credit ratings, performance of peers), short-term wholesale financiers … side" when bank assets are more arm's length and tradable (leading to more relevant public signals and lower liquidation …

We survey the extant literature on the effects of both a bank’s organizational structure and the physical distance … costs within a bank. …

Recent theoretical models argue that a bank’s organizational structure reflects its lending technology. A … hierarchically organized bank will employ mainly hard information, whereas a decentralized bank will rely more on soft information …. We investigate theoretically and empirically how bank organization shapes banking competition. Our theoretical model …

Recent literature (Boyd and De Nicoló, 2005) has argued that competition in the loan market lowers bank risk by …