) relationship between the standard deviation (coefficient of variation) and the average in bank lending-rate markups. In a … quantitative theory consistent with these empirical observations, banks' lending market power is determined in equilibrium and is a …. Normatively, under a given inflation target, welfare gains arise if a central bank can use additional liquidity-provision (or tax …

This paper studies bank competition with borrower adverse selection. In the model, expected non-performing loan costs … lending rates are always pro-cyclical. The paper examines the relative plausibility of sequential and simultaneous bank … competition. I show that with asymmetric costs, bank market shares are always inversely related to their efficiency, and that bank …

credit. We estimate a structural model of credit demand, loan use, pricing, and firm default using matched firm-bank data …

We analyze the relationship between bank size and risk-taking under the New Basel Capital Accord. Using a model with …

transfer ; credit derivatives ; public and private information ; access to credit ; bank competition …

) model featuring deposit issuance via bank credit and endogenous default. We argue that the official policy rate and the …

market busts if bank portfolios suffer, but also in booms if trading absorbs more money. The government has multiple policy … University) and Philip Lowe (Reserve Bank of Australia).Opening Address:"http://ssrn.com/abstract=3212469" Low for Long or …

explains the link between the liquidity premium and spreads. We present a theory of endogenous bank fragility arising from a … coordination friction among bank creditors. The theory's implications reduce to a single constraint on banks, which is embedded in … that reduce bank net worth exacerbate the coordination friction. In response, banks lend less and demand more liquid assets …