recapitalizing or by deleveraging. By deleveraging, banks transform the initial shock into a credit crunch, and, to the extent that … some firms depend on bank credit, amplify and propagate the shock to the real economy. I find that redistribution and other …Using Bayesian methods, I estimate a DSGE model where a recession is initiated by losses suffered by banks and …

by bad luck, the Great Moderation is mostly due to better institutions; (ii) the slowdown in credit spreads is driven by … an easier access to credit, while a higher exposure to financial risk determines the immoderation of balance sheet …

generates a distribution of bank sizes arising from differences in banks' ability to generate revenue from loans and from … impact of introducing a minimum liquidity standard for banks on top of existing capital adequacy requirements. The model … to a steady-state decrease of about 3 percent in the amount of loans made, an increase in banks' holdings of securities …

We formulate and test hypotheses about the role of bank type – small versus large, single-market versus multimarket …, and local versus nonlocal banks – in banking relationships. The conventional paradigm suggests that "community banks … Survey of Small Business Finance (SSBF), we conduct two sets of tests. First, we test for the type of bank serving as the …

structure of the debit card payment processing industry and caps debit card interchange fees for banks with over $10 billion in … increases in customer account fees. Some participants also predicted that banks would cut costs in response to the law by … fee income fell for treated banks, leading to a fall in noninterest income. We also find that banks only partially offset …

. In our model, a fraction of investors (depositors) can become informed about a shock to the return of the intermediary …'s assets. Later, the informed investors learn the realization of the shock and can choose their redemption behavior based on …

We examine the business model of traditional commercial banks in the context of their co-existence with shadow banks … banks create safe claims with a combination of costly equity capital and fixed income assets that allows their depositors to … remain "sleepy": they do not have to pay attention to transient fluctuations in the mark-to-market value of bank assets. In …

In the period prior to the financial crisis, leverage in the financial system increased substantially. This buildup was … likely facilitated by, among other factors, a loosening of credit terms related to OTC derivatives and securities financing … transactions. However, little or no systematic data on these trends were available at the time. The new Senior Credit Officer …