adequacy requirements, privately rational but socially inefficient disintermediation, and competitive international de-regulation … global liquidity creation by key central banks and, second, an ex-ante global saving glut, brought about by the entry of a … Tripartite financial stability arrangement between the Treasury the Bank of England and the FSA, weaknesses in the Bank of …

Many economists argue that the primary economic function of banks is to provide cheap credit, and to facilitate this … function, they advocate the strict protection and enforcement of creditor rights. But banks can serve another important … market equilibria in which cheap credit is inappropriately emphasized over project screening. Restrictions on collateral …

collateral requirements by banks may lead to a further decrease in the level of economic efficiency attained. We discuss bank …In the course of ordinary business, commercial banks frequently encounter entrepreneurs seeking loans for the purpose … relationship between banks and possible optimistic entrepreneurs. We examine this capital market from the stand-point of economic …

Shocks to bank lending, risk-taking and securitization activities that are orthogonal to real economy and monetary … type of shock. Expansionary securitization shocks lead to a permanent rise in real GDP and a fall in inflation. Bank … using a model of bank risk-taking and securitization. …

We use a unique data set to analyse how UK banks deal with small to medium size distressed firms both inside and … creditors’ runs. We find that the principal lender, ‘the bank’, makes few concessions to the borrower and that there is a … virtual absence of debt forgiveness. Finally, the bank relies heavily on the highly collateralized value of its loan in making …

their securitization decision. We also assess the case for requiring financial institutions to defer bonus pay so as to make … interaction of financial institutions' internal agency problems with the external agency problem that arises from securitization. …

We develop a dynamic model to assess the effects of liquidity and leverage requirements on banks' insolvency risk. The … model features endogenous capital structure, liquid asset holdings, payout, and default decisions. In the model, banks face … short-run; leverage requirements reduce default risk but may significantly reduce bank value; mispriced deposit insurance …

analyze various types of public intervention — mandatory transparency standards, provision of liquidity to distressed banks or …

when screening primarily improves the bank’s ability to identify profitable loans and when banks retain most of those … the relative benefits and costs of loan sales, and screening respectively. Accordingly, the potential regulation of loan …