in liquidity risk and expected liquidity needs for each bank and for the banking system. Large mergers tend to increase …We model the impact of bank mergers on loan competition, banks' reserve holdings and aggregate liquidity. Banks compete … expected aggregate liquidity needs, and thus the liquidity provision by the central bank. Comparative statics suggest that a …

The paper analyses the relationship between deposit insurance, debt-holder monitoring, and risk taking. In a stylised …-deposit creditors. Testing the model using EU bank level data yields evidence consistent with the model, suggesting that explicit … debt holders. We further find that credible limits to the safety net reduce risk taking of smaller banks with low charter …

multinational bank. We take a political economy approach to regulation and assume that supervisors maximize the welfare of their own …This paper analyzes cooperation between sovereign national authorities in the supervision and regulation of a … the countries are perfectly aligned, Þrst best closure regulation cannot be implemented; (2) the more aligned the …

Using a unique dataset of the Euro area and the U.S. bank lending standards, we find that low (monetary policy) short … securitization activity, weak supervision for bank capital and too low for too long monetary policy rates. Conversely, low long …

signal on bank project quality, short-term wholesale financiers have lower incentives to conduct costly monitoring, and …

This paper examines common regulation as cause of interbank contagion. Studies based on the correlation of bank assets … that banks have a common regulator. In our model, the failure of one bank can undermine the public’s confidence in the … forbearance to the initially failing bank in the hope that it - and hence other vulnerable banks - survives. By contrast, public …

reduce loan granting, especially to firms or from banks with lower capital or liquidity ratios. Moreover, responding to … resultant credit restriction by turning to other banks. Importantly the bank-lending channel is notably stronger when we account …