multinational bank. We take a political economy approach to regulation and assume that supervisors maximize the welfare of their own … interests are, the higher is welfare; (3) the bank can allocate its investments strategically across countries to escape closure. …

-merger financial performance. We find that, on average, bank mergers in the European Union resulted in improved return on capital. By …

asymmetries within the bank combined with fixed wages. Two kinds of inefficiencies arise in equilibrium: the credit officer either … bank accepts the information asymmetries, is called the centralized structure. Under decentralized structure the bank … finance more small firms, but incur higher costs than centralized ones. Small banks are interpreted as a bank with relatively …

. Further, the paper proposes a simple metric, which is used to identify contagion from one bank to another and identify …

financial institutions. In this paper, we put the joint response of euro area bank and sovereign CDS premia under the microscope …. We find that the bank rescue packages led to a clear structural break in these premia's comovement, which had been rather … to any further aggravation of the crisis. At the same time, the sensitivity of bank credit risk premia declined and …

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