contributes to the current debate on the optimal scope of bank activities, and highlights novel channels through which …

bank's financing structure. In our model the bank's assets consist of illiquid loans and liquid reserves and are financed … to an exogenous rollover risk. We show that the use of repos inflicts two types of indirect (“shadow”) costs on the bank …'s shareholders: first, it induces the bank to maintain higher liquid reserves in order to alleviate the additional default risk …

regulatory requirements. Our analytic characterization of the bank policy choices shows that imposing solely liquidity … requirements leads to lower bank losses in default at the cost of an increased likelihood of default. Combining liquidity … requirements with leverage requirements reduces drastically both the likelihood of default and the magnitude of bank losses in …

correlation of incentive pay with both the level and volatility of bank trading income -particularly for the pre-crisis period … markets divisions with the strength of incentive pay in unrelated bank divisions like retail banking. Moreover, pre …

Is bank- versus market-based financing different in its attitudes towards Environmental, Social, and Governance (ESG … bank monitoring and scrutiny. The Social and Governance components, in particular, matter. Furthermore, firms suffering … higher numbers of negative ESG reputation shocks are less likely to continue to rely on bank credit in response to lenders …

comprehensive sample that combines an original set of bank-specific bailout events with balance sheets of key affected and non …