We quantify the impact that central bank refinancing operations and funding facilities had at reducing the banking … of Diamond & Dybvig (1983), banks’ default and contagion, and central bank funding. Our framework incorporates demand and … the amount of deposits covered by the deposit guarantee scheme and the borrowing from the European Central Bank (ECB). We …

This paper studies the long-run evolution of bank risk and its links to the macroeconomy. Using data for 17 advanced … economies, we show that the riskiness of bank assets declined materially between 1870 and 2016. But even though bank assets have … become safer, the losses on these assets are associated with increasingly large output gaps. Before 1945, bank asset returns …

of the traditional bank business model. Specialized providers of financial services can chip away activities that do not …