procedures and contingent contracts is a promising way to reduce the threat of a fragile banking system. … part of them to depositors. In contrast, when banks are bailed out by the next generation, depositors receive non-contingent … contracts with high interest rates, while entrepreneurs obtain loan contracts that demand high repayment in good times and low …

procedures and contingent contracts is a promising way to reduce the threat of a fragile banking system. … part of them to depositors. In contrast, when banks are bailed out by the next generation, depositors receive non-contingent … contracts with high interest rates, while entrepreneurs obtain loan contracts that demand high repayment in good times and low …

face a tradeoff between the insurance benefits of financing with macro contingent contracts and the illiquidity premia they …

banks are bailed out, depositors receive non-contingent contracts with high interest rates, while entrepreneurs obtain loan …

banks are bailed out, depositors receive non-contingent contracts with high interest rates, while entrepreneurs obtain loan … Zürich Swiss Federal Institute of Technology Zurich Banking with Contingent Contracts, Macroeconomic Risks, and Banking …, state contingent contracts, banking regulation. JEL Classification: D41, E4, G2 ∗A previous version was entitled “Financial …

part of the risk to depositors. In contrast, under a workout of banking crises, depositors receive non-contingent contracts …