We develop a dynamic structural model of bank behaviour that provides a microeconomic foundation for bank capital and … liquidity structures and analyses the effects of changes in regulatory capital and liquidity requirements as well as their …

to fail. Failure of a bank may trigger formal insolvency (resolution) proceedings, if there is no available option to … save it as a going concern. Bank insolvency proceedings comprise various mechanisms, instruments, and transactions to … enable resolution authorities to properly deal with a failed bank. Bank restructuring within insolvency proceedings means …

This study examines the liquidity dynamics of banks in emerging market economies. Using annual data of 91 commercial … banks from 11 countries, the study established that banks in emerging markets have target liquidity ratios they pursue and … liquidity dynamics by banks in emerging market economies. …

the design of the loss absorption mechanism affects the stability of bank funding and distinguish between Conversion …. As we show, the first two loss absorption mechanisms unambiguously improve a bank’s stability of funding position. By … uncertainty regarding a bank’s ex post solvency position. Bank managers, investors as well as supervisors and regulators should be …

banking system to aggregate liquidity shocks? And what are the implications, if any, for banking regulation? To answer these … questions, I study a Diamond-Dybvig environment, where banks hedge against aggregate liquidity risk in the interbank market or … contract, and default in equilibrium only when facing systemic liquidity risk. In this case, the allocation at default is …

unweighted leverage requirements, their differential impact on bank lending, and equity buffer accumulation in excess of … regulatory minima. Tighter risk-weighted capital requirements reduce loan supply and lead to an endogenous fall in bank … profitability, reducing bank incentives to accumulate equity buffers and, therefore, increasing the incidence of bank failure …

-2009 financial crisis. Governments injected into troubled institutions massive amounts of fresh capital and/or guaranteed bank assets … and liabilities. We employ event study methodology to estimate the impact of government-intervention announcements on bank … bank-and-time effects, virtually all announcement impacts vanish. The policy implication is that the large public …