clears only at fire-sale prices following a large number of bank failures. The gains from acquiring assets at fire …-sale prices make it attractive for banks to hold liquid assets. We show that the resulting choice of bank liquidity is counter … crises may be desirable ex post. However, policies aimed at resolving crises affect ex-ante bank liquidity in subtle ways …

We review the literature on resolving bank and corporate sector crises to identify government policies that affect the …, although often missing key to successful bank and corporate restructuring. Sustainability of restructuring calls for deeper …

inforamtion framework shows why the banking sector is so important to the economy, and provides a rationale for bank regulation …

, firm debt and the value of firm and bank equity in an endogenous growth model. Prior to crisis, foreign capital inflows and … bank debt rise relative to investment and domestic production. The aggregate portfolio of the banking sector deteriorates … and the total value of bank equities declines in proportion to that for goods producers progressively. The model …

From 2010 to 2012, the relation between bank stock returns from European Union (EU) countries and the returns on …

simple model where, even ignoring interconnectedness issues, the failure of a bank causes a larger welfare loss than the … banks, and the size of this response should be larger if a bank, rather than a similarly-sized nonfinancial firm, fails …

Economic theories posit that bank liability insurance is designed as serving the public interest by mitigating systemic … private interests of banks, bank borrowers, and depositors, potentially at the expense of the public interest. Empirical …-through subsidy targeted to particular classes of bank borrowers …