Banks are intrinsically fragile because of their role as liquidity providers. This results in under-provision of … liquidity. We analyze the e¤ect of government guarantees on the interconnection between banks' liquidity creation and likelihood … of runs in a model of global games, where banks.and depositors' behavior are endogenous and a¤ected by the amount and …

processes in which regulators "catch" financially distressed banks; "restrict" their activities over time; and "release" the … banks from restrictions at sufficiently healthy capital ratios. The "catch-restrict-release" approach is a global phenomenon …

. Specifically, banks originating from a country that has lower level of trust tend to have lower interbank borrowing. Using a … the network structure of interbank markets. Core banks acting as interbank intermediaries in the network are more …

. We have two main results. First, capital helps small banks to increase their probability of survival and market share at … large banks primarily during banking crises. Additional tests explore channels through which capital generates the …

We analyze comparative advantages/disadvantages of small and large banks in improving household sentiment regarding … data from 2000 to 2014. Surprisingly, the evidence suggests that large rather than small banks have significant comparative …. Additional analyses are consistent with both scale economies and the superior safety of large banks as channels behind the main …