This paper argues that a special bank bankruptcy regime is desirable for the efficient restructuring and/or liquidation of distressed banks. We first explore the principal features of corporate bankruptcy law. Next, we examine the specific characteristics that distinguish banks from other...

This paper evaluates the impact of information technology (IT) on the operations of banks and the structure of the banking industry, including implications for stability. On the one hand, banks can focus on relationship banking and use IT developments to tailor services to individual needs and...

The global financial crisis has further highlighted the importance of bank capital regulation for the stability of the banking system. This article aims to reconcile the views of the academics and regulators about bank capital regulation. Lightweight and procyclical bank capital regulation with...

This article analyzes bank bankruptcy regimes across 142 countries. By employing factor analysis, we identify five main dimensions of bank bankruptcy frameworks: (1) Difficulty of forbearance & ease of court appeal, (2) Availability of supervisory tools, (3) Court involvement, (4) Supervisory...

This article analyzes bank bankruptcy regimes across 142 countries. By employing factor analysis, we identify five main dimensions of bank bankruptcy frameworks: (1) Difficulty of forbearance & ease of court appeal, (2) Availability of supervisory tools, (3) Court involvement, (4) Supervisory...

This paper identifies the main dimensions of capital regulation. We use survey data from 142 countries from the World Bank's (2013) database covering various aspects of bank regulation. Using multiple explorative factor analysis, we identify two main dimensions of capital regulation: complexity...

This paper provides a novel rationale for why banks combine lending and deposit taking. Contrary to existing work, it shows that demand deposits commit banks to monitoring even if deposit insurance is implemented. Investors with liquidity needs withdraw their deposits early and are not willing...

This paper argues that a special bank bankruptcy regime is desirable for the efficient restructuring and/or liquidation of distressed banks. We first explore the principal features of corporate bankruptcy law. Next, we examine the specific characteristics that distinguish banks from other...

A fundamental feature of more recent financial innovations is their focus on augmenting marketability. We point at the potential dark side of marketability. Marketability has possibly led to an excessive proliferation of transaction-oriented banking (trading and financial market activities). The...

This paper investigates systemic risk of bank holding companies (BHCs) following the enactment of mandatory clearing of derivatives by the Dodd–Frank Act. We find that BHCs that were bigger users of derivatives experienced a larger drop in systemic risk after mandatory clearing, all else being...