Why were some banks heavily affected by mortgage crises, while others barely? Why were some banking sectors dominated by “originate and distribute” model, while others were trading? Why did some banks decide not to follow the others, and preferred to stay traditional banks? How the models...

The systemic banking crises placed enormous pressure on national governments to intervene. However, these actions are justified if they contribute to economic recovery without subsequently increasing significant risk in the banking sector. Using a novel bank-level database, we examine whether...

The systemic banking crises placed enormous pressure on national governments to intervene. The empirical literature is mute on what the optimal bailout program should look like to mitigate the negative consequence of government intervention in the banking sector. We document that, in general,...

We study the effectiveness of three common bank resolution mechanisms: bailouts, bank sales, and ‘bad banks’. We first apply the financial fragility model of Goodhart et al. (2005, 2006a) to analyze the impact of these resolution mechanisms on bank behavior. We then use a novel bank-level...