deposits excessively fragile in which case there is a role for outside bank capital. Greater bank capital reduces liquidity … creation by the bank but enables the bank to survive more often and avoid distress. A more subtle effect is that banks with … different amounts of capital extract different amounts of repayment from borrowers. The optimal bank capital structure trades …

allows us to show how bank-level risk management considerations should factor into the pricing of those risks that cannot be …

Bank balance sheet lending is commonly viewed as the predominant form of lending. We document and study two margins of … document the limits of the shadow bank substitution margin: shadow banks substitute for traditional—deposit-taking—banks in … quantitative consequences of several policies on lending volume and pricing, bank stability, and the distribution of consumer …

through central bank purchases of privately held risky assets and their replacement by government debt, with a return that is … they are born. I show that a change in the asset composition of the central bank's balance sheet will change equilibrium … asset prices. Further, I prove that a policy in which the central bank stabilizes fluctuations in the stock market is Pareto …

via contractions in credit and disruption in financial markets. Managing the size and composition of the central bank …

This paper develops a model of bank asset and liability management, based on the idea that information problems make it …' financing constraints and thereby leads to a cutback in bank lending -- this is the 'bank lending channel' in action. However …

Under the classical gold standard (1880-1914), the Bank of France maintained a stable discount rate while the Bank of …, differ so much? How did the Bank of France manage to keep a stable rate and continuously violate the "rules of the game …"? This paper tackles these questions and shows that the domestic asset portfolio of the Bank of France played a crucial role …

conventional interpretation, but consistent with empirical findings, increases in current or future profitability reduce the …