Solvency II has one standard equity solvency capital requirement for type 1 or developed market stocks (39 percent) and one for type 2 or emerging market stocks (49 percent). As such, differences in financial economic risk of stock portfolios within developed or emerging markets do not influence...

We propose a novel conceptual approach to transparently characterizing credit market outcomes in economies with multi-dimensional borrower heterogeneity. Based on characterizations of securities' implicit demand for bank equity capital, we obtain closed-form expressions for the composition of...

In the aftermath of the global financial crisis, US regulators have required banks to disclose more details regarding the valuation techniques of their traded assets and liabilities. Using data from 2013 and 2014 annual reports for nine primary dealers, we examine the determinants of the choice...

This paper explores the relationship between banks and stablecoins and their issuers, focusing on the mechanical effects on banks' capital and liquidity ratios when issuing stablecoins or collecting deposits from stablecoin issuers. The analysis reveals that converting retail deposits into...

Since the 2008 financial crisis, in which the Reserve Primary Fund "broke the buck," money market funds (MMFs) have been the subject of ongoing policy debate. Many commentators view MMFs as a key contributor to the crisis because widespread redemption demands during the days following the Lehman...

Korean Abstract정리금융회사에 대한 과세제도는 공공재적 예금보험서비스를 제공하는 비영리법인의 성격에도 상법상 주식회사로 설립된 결과 영리내국법인으로 취급되어 경영실적에 따라 거액의 법인세 부담이 발생하는...

The present paper contains a brief presentation and analysis, in a historical perspective through the lens of the recent major crises, of the legal framework governing the European Economic and Monetary Union (EMU), as well as current developments and challenges ahead. It is structured in three...

I embed shadow banks in a quantitative general equilibrium model in which limited liability and deposit insurance can lead regulated banks to provide socially inefficient risky loans. Higher capital requirements can eliminate excessive risk at the cost of lower liquidity provision. In general...