guarantee. The reason is that the prospect of a bail-out induces the protected bank to expand, thereby intensifying competition …The explicit or implicit protection of banks through government bail-out policies is a universal phenomenon. We analyze … main result is that the bail-out policy unambiguously leads to higher risk-taking at those banks that do not enjoy a bail-out …

optimally designed and its premium is risk related. This is driven by the possibility of contagious bank runs. We prove that … bank runs can impose such great losses on banks, that banks choose less correlated portfolios to avoid contagion altogether …

, however, the bank can readjust the level of risk after the deposit rate is contracted, market discipline leads to an increase …

This paper empirically investigates the effect of government bail-out policies on banks outside the safety net. We … construct a measure of bail-out perceptions by using rating information. From there, we construct the market shares of insured … competitor banks for any given bank, and analyze the impact of this variable on banks' risk-taking behavior, using a large sample …

than employees. There are long-standing competition and conduct problems in the market for small business finance, and …

to a more comprehensive approach toward financial services (e.g., opening bank accounts and offering basic financial …