Stablecoins are at the center of debate surrounding decentralized finance. We develop a
dynamic model to analyze the instability mechanism of stablecoins, the complex incentives …

We develop a tractable model of systemic bank runs. The market‐based banking system
features a two‐layer structure: banks with heterogeneous fundamentals face potential runs …

We evaluate how the liquidity coverage rule affects US banks' opacity and funding liquidity
risk. Banks subject to the rule become significantly more opaque and funding liquidity risk …

The research aims to investigate the impact of increased capital requirements and high
liquidity levels on the profitability of European banks in the post crisis period. The study …

We modify the 1983 Diamond and Dybvig model so that banks offer liquidity services to
depositors, raise equity funding, make risky loans, and invest in safe, liquid assets. Banks …

We show that distortion in the size distribution of banks around regulatory thresholds can be
used to identify costs of bank regulation. We build a structural model in which banks can …

We develop aq theory of investment with endogenous leverage, payout, hedging, and risk-
taking dynamics. The key frictions are costly equity issuance and incomplete markets. We …

We find that banks subject to the Liquidity Coverage Ratio (LCR banks) create less liquidity
per dollar of assets in the post-LCR period than non-LCR banks by, in part, lending less …

We propose a model of the financial system in which banks are individually prone to runs
and connected through fire sales. Strategic complementarities within and across banks …

This paper theoretically and empirically investigates the effects of liquidity regulation on the
banking system. We document that the current quantity-based liquidity rule has reduced …