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 …

financial development has important consequences for the efficiency and specialization (or diversification) of investments, in a …

We study empirically the effect of focus (specialization) vs. diversification on the return and the risk of banks using … high risk banks), sectoral loan diversification produces an inefficient risk-return tradeoff only for high risk banks, and … geographical diversification results in an improvement in the risk-return tradeoff for banks with low levels of risk. A robust …

banks (rather than securities markets), which results in excessively volatile credit creation and lower economic growth …. Third, large universal banks - which perform a wide range of banking services, and are peculiarly common in Europe … - contribute more to systemic risk than small and narrowly focused banks. To deal with these problems, policymakers should consider …

We study interbank lending and asset sales markets in which banks with surplus liquidity have market power vis …-à-vis banks needing liquidity, frictions arise in lending due to moral hazard, and assets are bank-specific. Surplus banks ration … lending and instead purchase assets from needy banks, an inefficiency more acute during financial crises. A central bank …

The headline numbers appear to show that even as banks and financial intermediaries suffered large credit losses in the … banks to lend over this period. We draw conclusions on how capital regulation may be reformed in light of our findings. …

by large commercial banks. We show that both banks located in surplus countries and banks located in deficit countries … apparent in August 2007, banks in both surplus and deficit countries experienced difficulties in rolling over ABCP and as a …

-movement between bank CDS and sovereign CDS, even after controlling for banks' equity performance, the latter being consistent with an …