{"id":1390,"date":"2025-06-28T14:01:00","date_gmt":"2025-06-28T12:01:00","guid":{"rendered":"https:\/\/www.christophbertsch.com\/?p=1390"},"modified":"2025-12-14T12:21:37","modified_gmt":"2025-12-14T10:21:37","slug":"new-riksbank-wp-441-on-the-us-regional-banking-crisis","status":"publish","type":"post","link":"https:\/\/www.christophbertsch.com\/?p=1390","title":{"rendered":"Revised Riksbank WP 441 on the US Regional Banking Crisis"},"content":{"rendered":"\n<p><a href=\"https:\/\/www.christophbertsch.com\/wp-content\/uploads\/2025\/12\/ABLM_BankRiskManagement.pdf\" data-type=\"link\" data-id=\"https:\/\/www.christophbertsch.com\/wp-content\/uploads\/2025\/12\/ABLM_BankRiskManagement.pdf\"><strong>&#8220;Bank fragility and risk management&#8221;<\/strong><\/a> with\u00a0<a href=\"http:\/\/toniahnert.com\" target=\"_blank\" rel=\"noreferrer noopener\">Toni Ahnert<\/a>, <a href=\"https:\/\/sites.google.com\/site\/agneseleonello\/\">Agnese Leonello<\/a>, and <a href=\"https:\/\/sites.google.com\/site\/robsmarquez\/\" target=\"_blank\" rel=\"noreferrer noopener\">Robert Marquez<\/a><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Abstract:  Shocks to banks\u2019 ability to raise liquidity at short notice can lead to depositor panics, as evidenced by recent bank failures. Why don\u2019t banks take a more active role in managing these risks? In a standard bank-run model, we show that risk management failures are most prevalent when exposures are more severe and managing risk would be particularly valuable. Bank capital and deposit insurance coverage act as substitutes for risk management on the intensive margin but as complements on its extensive margin, encouraging the adoption of risk management operations. We provide insights for the appropriate regulation of bank risk-management operations. (G01, G21, G23)<\/li>\n<\/ul>\n\n\n<div class=\"wp-block-image\">\n<figure class=\"aligncenter size-full\"><a href=\"https:\/\/www.christophbertsch.com\/wp-content\/uploads\/2024\/09\/RiskManagement2b.png\"><img loading=\"lazy\" decoding=\"async\" width=\"500\" height=\"347\" src=\"https:\/\/www.christophbertsch.com\/wp-content\/uploads\/2024\/09\/RiskManagement2b.png\" alt=\"\" class=\"wp-image-1391\" srcset=\"https:\/\/www.christophbertsch.com\/wp-content\/uploads\/2024\/09\/RiskManagement2b.png 500w, https:\/\/www.christophbertsch.com\/wp-content\/uploads\/2024\/09\/RiskManagement2b-300x208.png 300w, https:\/\/www.christophbertsch.com\/wp-content\/uploads\/2024\/09\/RiskManagement2b-432x300.png 432w\" sizes=\"auto, (max-width: 500px) 100vw, 500px\" \/><\/a><figcaption class=\"wp-element-caption\">The figure shows the risk management intensity z* as a function of the interim asset value for two levels of bank capital: k and k&#8217;&gt;k. We can see that banks fail to do any risk management<em> <\/em>when the interim asset value is low, and that risk management failures are facilitated by lower levels of bank capital.<\/figcaption><\/figure><\/div>\n\n\n<ul class=\"wp-block-list\">\n<li>Keywords:&nbsp;Banking crises, depositor withdrawals, asset valuations, risk management, global games.<\/li>\n<\/ul>\n","protected":false},"excerpt":{"rendered":"<p>&#8220;Bank fragility and risk management&#8221; with\u00a0Toni Ahnert, Agnese Leonello, and Robert Marquez<\/p>\n","protected":false},"author":4,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[6,79,12,70],"tags":[],"class_list":["post-1390","post","type-post","status-publish","format-standard","hentry","category-academic-research","category-bank-runs","category-finance-banking","category-global-games"],"_links":{"self":[{"href":"https:\/\/www.christophbertsch.com\/index.php?rest_route=\/wp\/v2\/posts\/1390","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.christophbertsch.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.christophbertsch.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.christophbertsch.com\/index.php?rest_route=\/wp\/v2\/users\/4"}],"replies":[{"embeddable":true,"href":"https:\/\/www.christophbertsch.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=1390"}],"version-history":[{"count":7,"href":"https:\/\/www.christophbertsch.com\/index.php?rest_route=\/wp\/v2\/posts\/1390\/revisions"}],"predecessor-version":[{"id":1500,"href":"https:\/\/www.christophbertsch.com\/index.php?rest_route=\/wp\/v2\/posts\/1390\/revisions\/1500"}],"wp:attachment":[{"href":"https:\/\/www.christophbertsch.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=1390"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.christophbertsch.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=1390"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.christophbertsch.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=1390"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}