Using evidence from Russia, we explore the effect of the introduction of deposit insurance on bank risk. Drawing on …

This paper analyzes the effect of the removal of government guarantees on bank risk taking. We exploit the removal of …

We analyze the impact of introducing a central bank-issued digital currency (CBDC) on the operational framework of … frictional interbank market, a central bank with deposit and lending facilities, and household preferences for different liquid …" has a rather small effect on bank lending to the real economy, and hence on aggregate investment and GDP. This result …

mechanisms for bank risk-taking studied in a large partial equilibrium literature. We show that competitive equilibriums maximize … banks is higher than that of banks enjoying monopoly rents, and is robust to the introduction of social costs of bank … failures. In this model, there is no trade-off between bank competition and financial stability. -- general equilibrium ; bank …

We analyze the optimal contract between a risk-averse manager and the initial shareholders in a two-period model where …