A common view of banks and other financial institutions is that they function primarily as
intermediaries, managing flows of scarce funds from those who have accumulated them to …

Global interconnectedness can yield significant benefits, but can also create new systemic
risks. In a globalised world, systemic risk creates vulnerabilities such that a single node in a …

This paper analyzes the relationship between banks' divergent strategies toward
specialization and diversification of financial activities and their ability to withstand a banking …

Recent academic work and policy analysis give insight into the governance problems
exposed by the financial crisis and suggest possible solutions. We begin this paper by …

We examine the risk-taking behavior of money market funds during the financial crisis of
2007–2010. We find that (1) money market funds experienced an unprecedented expansion …

We show that the effect of non-interest income on systemic risk exposures varies with bank
size and a country's institutional setting. Non-interest income reduces large banks' systemic …

The study of financial stability is a highly expansive and significant area of academic inquiry.
However, traditional literature reviews are often constrained in their scope as they tend to …

We study the interaction between relationship banking and short-term arm's length activities
of banks, called trading. We show that a bank can use the franchise value of its relationships …

In this review, we provide an economic assessment of the Dodd-Frank Act of 2010 in terms
of the likely efficacy of the financial-sector regulation it proposes. We focus in particular on its …

Investment Banking: Institutions, Politics, and Law provides an economic rationale for the
dominant role of investment banks in the capital markets, and uses it to explain both the …