balance the benefits of the provision of liquidity services by bank deposits with the costs of bankruptcy. The risk in the …

about the pass-through of monetary policy. On the one hand, negative rates could lead to declining bank profitability making … interest rates per se. This paper uses a large micro level data set of the German bank universe to examine how banks behave in … this uncharted territory. The evidence found suggests that bank's business model, i.e. the share of overnight deposits …

profitability of banks’ portfolios affect their ability to cover for any liquidity shortage and hence influence the premium they … require to carry maturity risk. During a boom, profitability is increasing and thus spreads are low, while during a recession … profitability is decreasing and spreads are high, in accordance with the cyclical properties of term spreads in the data. Second, we …

allowances on leverage. We show that TDA act as a complement to debt leverage, generating a negative leverage-profitability …

optimal dynamic control problem is characterized by two stochastic state variables: the equity value, and profitability (ROA …) of the _rm. According to the empirical evidence, we let profitability follow a mean reverting process. The problem is …

This paper explores the impacts on an economy of a central bank changing the size and composition of its balance sheet … bank asset purchases have the potential to affect households' choices by changing the composition and return of their asset … the big expansion of central bank balance sheets in recent years has been ineffective. Our finding is rather that the …

. These findings indicate that profitability concerns, while absent from standard theoretical models of central banking, are …

bank's concern about the cost of financial disruption generates an asymmetric response, thus contributing to the creation … of an asset price bubble. In an economy with a highly leveraged financial structure, the central bank has an incentive to … a central bank to inject liquidity in a crisis. …