European finance is becoming increasingly cross-border, while the European architecture for safeguarding financial stability - including decision-making processes for providing financial-stability public goods - have remained decentralized with some explicit mechanisms for coordination across...

In 1993, when this article was originally published, Congress had recently passed the Federal Deposit Insurance Corporation Improvement Act of 1991 (FDICIA) to reduce taxpayers' exposure to financial system losses, including their exposure at "too big to fail" financial institutions. In his new...

European finance is becoming increasingly cross-border, while the European architecture for safeguarding financial stability including decision-making processes for providing financial-stability public goods have remained decentralized with some explicit mechanisms for coordination across...

We study the optimal joint design of prudential supervision and deposit guarantee regulations in a multi-country, integrated banking market, where policy-makers have preferences regarding profitability and stability of the banking sector. Non-coordinated policies will tend to yield too little...