equilibrium when banks have monopoly power, justifying a Pigouvian tax in this case. …

differences in financial factors, which may reflect differences in country risk and the legal and regulatory framework that banks …

We present a network model of the interbank market in which optimizing risk averse banks lend to each other and invest …

defaults. The measure is based on an explicit criterion, the aggregate debt repayments, and is bank’s specific, affected by the … bank’s characteristics and links to other banks. Such measure can be useful to a regulator to determine in which banks cash …

This paper uses data from a panel of more than 400 Italian banks for the period 2001 – 2012 to examine the main …, signalling) or non-discretionary (related to the business cycle). The results suggest that LLP in Italian banks is driven mainly … local banks: since their loans are more collateralised, their behaviour is more strongly affected by supervisory activity …

banks play complex, long horizon games and face more than one tradeoff. We account for these issues in a simple infinite … bankruptcy. We term these factors discipline and stability effects, respectively. The central bank’s welfare decreases with … central banks cannot attain both low inflation and financial stability. …

. There are two main results: First, if all banks have enough liquidity so that they can honor their short-term obligations, a … banks, a financial transactions tax contributes to financial distress and undoes other policy measures that are used to …