Commercial banks across the world have been implementing the Basel III accord, which is the most important international response to the 2007–2008 financial crisis. Particularly, the liquidity coverage ratio (LCR) introduced by the Basel III accord is the first global standard for banking...

The fractional reserve theory of money creation only considers the reserve requirement but ignores prudential regulations. We study the impacts of three prudential regulations under the Basel III framework on the commercial bank's ability to create money. Using a balance sheet approach, we...

Status quo bias is one of the most commonly observed and attested behavioral biases in economics studies. I incorporate status quo bias into the Random Utility Model (RUM) and three of its special cases, including the Luce model, the Dual Random Utility Model (dRUM) and the Single-Crossing...