We review the extensive literature on systemic risk and connect it to the current regulatory
debate. While we take stock of the achievements of this rapidly growing field, we identify a …

This paper provides a structured overview of the burgeoning literature on the economics of
CBDC. We document the economic forces that shape the rise of digital money and review …

By providing liquidity to depositors and credit-line borrowers, banks can be exposed to
double-runs on assets and liabilities. For identification, we exploit the 2007 freeze of the …

This paper tests whether an increase in insured deposits causes banks to become more
risky. We use variation introduced by the US Emergency Economic Stabilization Act in …

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 …

This paper studies the effects of government guarantees on the interconnection between
banking and sovereign debt crises in a framework where both the banks and the …

This paper investigates the impact and appropriateness of establishing a fully mutualized
European deposit insurance scheme (EDIS) using a unique supervisory micro-level data set …

Fiscal deficits represent an important variable for banks' aggregate credit risk, revealing
governments' ability to curb banks' losses in bad states, either with direct cash infusions or …

This paper studies the optimal determination of deposit insurance when bank runs are
possible. We show that the welfare impact of changes in the level of deposit insurance …

During the financial crisis, 114 European banks benefited from government support in
Europe. We investigate the financial condition of banks before and after receiving state …