improving the resiliency of the regulated banking sector, create room for bank disintermediation and do not unambiguously limit …

the trade-off between providing liquidity services through deposits and minimizing deadweight default costs. Optimal …

This paper examines whether banks' liquidity and maturity mismatch decisions are affected by the choices of competitors … and the impact of these coordinated funding liquidity policies on financial stability. Using a novel identification … strategy where interactions are structured through decision networks, I show that banks do consider their peers' liquidity …

-term domestic government bonds that could be pledged to obtain central bank liquidity. This "collateral trade" effect is large, as …We study the design of lender of last resort interventions and show that the provision of long-term liquidity … European Central Bank's three-year Long-Term Refinancing Operation incentivized Portuguese banks to purchase short …

, funding costs, and prudential regulation. A bank's choice of encumbrance trades off the benefit of expanding profitable …

domestic bank failures may be contemporaneous to sovereign crises, giving rise to risk-sharing motives to mutualize the funding … of bail-outs. Raising public funds to conduct a bail-out entails the deadweight loss of distortionary taxation. Bank bail … the public backstop and forbearance in early bank intervention in the fiscally stronger country, facilitating bail-outs in …