We examine bank governance and risk choices from the 1890s, a period without distortions
from deposit insurance or other government assistance to banks. We link differences in …

Since the financial crisis of 2007-2009, policymakers have debated the need for a new
toolkit of cyclical" macroprudential" policies to constrain the build-up of risks in financial …

The unit banking structure of the United States produced a uniquely important interbank
correspondent network. During the National Banking Era, this network normally provided …

Abstract The National Banking Acts (NBAs) of 1863–1864 established rules governing the
amounts and locations of interbank deposits, thereby reshaping the bank networks. Using …

Abstract During the 2007-09 financial crisis, there were severe reductions in the liquidity of
financial markets, runs on the shadow banking system, and destabilizing defaults and near …

This study assesses the effects of reserve requirements on the probability of bank failure and
compares them to those of capital requirements. While both requirements affect banks' …

We use a novel data set spanning 1820–1910 to assess the factors leading to the creation of
formal bank supervisory institutions across American states. We show that it took more than …

In the wake of the global financial crisis (GFC), many nations embarked on reform to the
financial regulatory system. This reform, unprecedented in its scope, touched virtually every …

Abstract The Federal Reserve System was established to supplant the private interbank
system, which was widely seen as a source of instability. We examine how the Fed's …

This paper explores what history can tell us about the interactions between macroprudential
and monetary policy. Based on numerous historical documents, we show that liquidity ratios …