CoCo’s (contingent convertible capital) are designed to convert from debt to equity when banks need it most. Using a … on other banks in the system in the likely case of correlated asset returns, so bank runs elsewhere in the banking system …

restructuring provide banks with incentives to restructure bad loans and free up resources for new economic activity. Other … interventions lead banks to roll over bad loans, tying up resources in distressed firms. Our analysis suggests that zombie banks are …

incentives for risk creation.When banks differ in credit opportunities, a Pigovian tax on short-term funding is efficient in … credit incentives are strongest.When banks differ instead mostly in gambling incentives (due to low charter valueor …

We study a politician's choice for state or private control of banks. The choice trades of lobbying contributions … maximize their rents. As state banks are less efficient, at higher level of accountability there is a shift to private control …. At the transition point there is a jumpin risk taking, as private banks do not internalize the social costs of bank …