, especially when a bank receives a public bailout. However, the withdrawal risk for a distressed bank is mitigated by strong bank … non-distressed bank, or which maintain a credit relationship with a distressed bank are significantly less likely to … withdraw deposits. Our findings provide empirical support to the Basel III liquidity regulations which emphasize the role of …

makers reduces distortions in the decision making process, which has implications for the design of bank regulation and …In this paper, we examine how the institutional design affects the outcome of bank bailout decisions. In the German … savings bank sector, distress events can be resolved by local politicians or a state-level association. We show that decisions …

listed European banks to measure each bank's contribution to systemic risk (SRISK) at the national and at the Euro Area level … heterogeneity both across countries and banks. Second, we explore the drivers of systemic risk. A bank s contribution to systemic … risk increases in bank size, in bank profitability, and in the share of banks nonperforming loans. It decreases in the …

regulation on the demand of Monetary Financial Institutions (MFI) for marketable sovereign debt. Our results suggest that bank …This paper examines the treatment of sovereign debt exposure within the Basel framework and measures the impact of bank … regulation has a significant positive impact on MFI demand for domestic government securities. The results are representative for …

insures its deposits, or as uninsured 'shadow bank' whose leverage is constrained by the risk-aversion of investors. The …This paper presents of a model of banking in order to study why different agents may prefer a 'regulation by the market …' over the regulation by a governmental agency, and it illustrates the interaction of two sectors regulated in such …

The declared intention of policy makers is that future bank restructuring should be conducted through bail-in rather … than bail-out. Over the past years there have been a few cases of European bank restructuring where bail-in was implemented …

This paper analyzes how a bank shareholder optimally designs the compensation scheme of a bank manager if there are … there is a problem of excessive risk-taking, bail-out guarantees lead to steeper compensation schemes and even more risk …-maximizing regulator to impose ceilings on bank bonuses. …