regulators try to resolve these problems. We find that liberalizing bank capital flows between economies reduces total welfare by … considerations arise in this context. Allowing multinationals improves welfare when bank capital can flow across borders, despite the …We model the interaction between two economies where banks exhibit both adverse selection and moral hazard and bank …

that is able to bail out the bank either by injecting capital at a fixed return or by receiving an equity claim. This … bank suffering from liquidity shocks, we find that the unregulated bank keeps too much liquidity and monitors too little. A … central bank can alleviate the liquidity problem, but induces moral hazard. Therefore, we introduce an additional authority …

induces moral hazard. Therefore, we introduce a fiscal authority that is able to bail out the bank by injecting capital. This …Banking regulation has proven to be inadequate to guard systemic stability in the recent financial crisis. Central …. Using a model of a systemic bank suffering from liquidity shocks, we find that the unregulated bank keeps too much liquidity …

Today’s regulatory rules, especially the easily-manipulated measures of regulatory capital, have led to costly bank … failures. We design a robust regulatory system such that (i) bank losses are credibly borne by the private sector (ii …) systemically important institutions cannot collapse suddenly; (iii) bank investment is counter-cyclical; and (iv) regulatory …

creating counter-cyclical incentives for banks to raise capital, and so encourage bank lending in bad times. They avoid the …We propose a new form of hybrid capital for banks, Equity Recourse Notes (ERNs), which ameliorate booms and busts by … the too-big-to-fail problem: rather than forcing banks to increase equity, we should require the same or larger capital …

a model in which the venture capitalist can evaluate the entrepreneur’s project more accurately than the bank but can … property rights has contributed to the recent dramatic growth of the US venture capital industry. …

foreigners. We use a bank-level panel data set spanning all British and foreign banks providing loans within the United Kingdom … credit guarantees, or received capital injections. We use standard empirical panel-data techniques to study the "loan mix …," domestic (British) loans of a bank expressed as a fraction of its total loan activity. We also study effective short …

low, so it may end up exacerbating the inherent pro-cyclicality of risk-sensitive bank capital regulation. We also note …We provide a critical assessment of the countercyclical capital buffer in the new regulatory framework known as Basel … application of the buffer would tend to reduce capital requirements when GDP growth is high and increase them when GDP growth is …