The traditional model of bank-led financial intermediation, where banks issue demandable deposits to savers and make … size. Implicit banks' costs and subsidies explain shifting bank balance sheet composition. Together, these forces explain …

period, banks with low branch density benefited from large deposits inflows, leading to even lower density. But the virtuous … cycle of deposits growth in these banks stopped spinning when investors became wary about their financial health. Stock … prices of banks with low branch density plummeted during the 2023 Banking Crisis as these banks experienced larger outflows …

banks. These two sectors are commonly viewed either as operating in parallel, performing different activities, or as … substitutes, performing substantially similar activities, with banks inside and NBFIs outside the perimeter of banking regulation … transformed over time rather than as having migrated from banks to NBFIs. These transformations are at least in part a response to …

offset if drawdowns are expected to be left on deposit at the same bank, which happened at some of the largest banks during …

The deposit business differs at large versus small banks. We provide a parsimonious model and extensive empirical … evidence supporting the idea that much of the variation in deposit-pricing behavior between large and small banks reflects … differences in "preferences and technologies." Large banks offer superior liquidity services but lower deposit rates, and locate …

In the face of rising interest rates in 2022, banks mitigated interest rate exposure of the accounting value of their … derivatives left most assets unhedged. The banks most vulnerable to asset declines and solvency runs decreased existing hedges … declines, banks used accounting reclassification to diminish the impact of interest rate increases on book capital. Banks …

important are the distortions in the greater regulation of banks that differentially limit risk-taking across alternative … addresses these questions and discusses how banks and nonbanks helped provide liquidity to the nonfinancial sector during the …