investor wealth drives the demand for riskless debt and indirectly for securitization, ii) intermediary assets and leverage …

banks to affect borrowers' choice of project risk. Unlike corporate bonds, bank loans are typically secured senior debt … and collateral are crucial because they allow the bank to threaten the borrower and liquidate inefficient projects. We …Empirical evidence suggests that banks playa unique role in the savings-investment process, affecting firms' cost of …

-term safe assets are money or money-like. A long-term safe asset can store value over time or be used as collateral. Human …-produced short-term safe assets—bank debt, are subject to runs and this has important implications for macroeconomics and for …

The regulation of bank capital as a means of smoothing the credit cycle is a central element of forthcoming macro …-prudential regimes internationally. For such regulation to be effective in controlling the aggregate supply of credit it must be the case … that: (i) changes in capital requirements affect loan supply by regulated banks, and (ii) unregulated substitute sources of …

We show that stricter bank liquidity standards can trigger unintended credit booms when there is heterogeneity in … interbank pricing power. Attempts to circumvent the regulation change the allocation of savings across institutions, eliciting …

effects of bank regulation and the impact of deregulation. We find that where entry was more restricted the cost of credit was …We use exogenous variation in the degree of restrictions to bank competition across Italian provinces to study both the … increase in bad loans. In provinces where restrictions to bank competition were most severe, the proportion of bad loans after …

may threaten financial stability by increasing bank failures and by increasing the incentives for banks to take on more … but greater risk. This paper argues that most nontraditional activities, such as banks acting as derivatives dealers …, expose banks to risks and moral hazard problems that are similar to those associated with banks' traditional activities, and …

to be affected by securitization, and to different definitions of delinquency. Our results are strongest in subsamples in …

While banks may change their supply of credit due to bank balance sheet shocks (the local lending channel), firms can … separately estimating these effects. We estimate the local and aggregate lending channel effects of the banks' ability to … become significantly more favorable due to securitization. Securitization also leads to an expansion in credit on the …