I propose a dynamic general equilibrium model in which strategic interactions between banks and depositors may lead to … endogenous bank fragility and slow recovery from crises. When banks' investment decisions are not contractible, depositors form … complementarities and possibly multiple equilibria: in response to an increase in funding costs, banks may optimally choose to pursue …

We analyze securities trading by banks during the crisis and the associated spillovers to the supply of credit. We use … a proprietary dataset that has the investments of banks at the security level for 2005-2012 in conjunction with the … credit register from Germany. We find that - during the crisis - banks with higher trading expertise (trading banks) increase …

-in effects on bank resilience appear mixed. While it incentivises banks to reduce risk-taking (e.g., increasing risk …

European banks. In this paper, we evaluate the possible effects of these constraints on risk and diversification in the … analysis. We then analyze the risk and diversification in the sovereign bond portfolios of the largest European banks and … requirements, demanding that banks modify their holdings to increase their portfolio diversification may mitigate fire …

This paper examines whether banks' liquidity and maturity mismatch decisions are affected by the choices of competitors … strategy where interactions are structured through decision networks, I show that banks do consider their peers' liquidity … that these strategic funding liquidity decisions increase both individual banks' default risk and overall systemic risk …

The aim of this paper is twofold: first, to study the determinants of banks' net interest margin with a particular … for banks of the relaxation of a binding prudential limit on maturity mismatch, in place in Italy until the mid-2000s. The …

stochastic policy mix lead to suboptimal allocations if banks do not internalize insolvency costs. The policy of forbearance may … make banks internalizing such costs and improves the efficiency of intermediation. …

We investigate profit shifting by the largest and systemically relevant European multinational banks using new data …