left-tail risk protection, conditional on a crisis, fully explains this Big−Small bank equity premium “fee” paid in normal … the big bank equity return discount in non- crisis times. Over several economic cycles, there is no abnormal Big …−Small bank equity premium and bailout insurance is fairly priced for equityholders in that there is no difference between big and …

to their shareholders, suggesting that dividends are used to shift risk from bank owners to the taxpayer. These findings … support recent policy proposals that include restrictions on dividends as part of a set of early regulatory responses to bank …

We construct a model of bank's financing under moral hazard. The bank as an intermediary borrows funds from the … positive return under scrupulous behavior of bank, but bank promises the investors to monitor the project properly that is the … monitored bank debt. We characterize the conditions under which the double moral hazard competition leads to an excessive level …

bank liabilities. We find that fair pricing of guarantees is desirable if and only if the banking sector is sufficiently …