Information disclosure is an essential component of regulation in financial markets. In this
article, we provide a cohesive analytical framework to review certain key channels through …

Despite the devastating worldwide human and economic tolls of the COVID-19 crisis, it has
created some positive economic and financial surprises and opportunities for research. This …

We describe the background, design choices, and particular details of stress tests used as
part of an overall supervisory regime, that is, their formal integration into the ongoing …

The use of accounting measures and disclosures in banks' contracts and regulation
suggests that the quality of banks' financial reporting is central to the efficacy of market …

We study an optimal disclosure policy of a regulator that has information about banks (eg,
from conducting stress tests). In our model, disclosure can destroy risk-sharing opportunities …

We compare the capital shortfall measured by regulatory stress tests, to that of a benchmark
methodology—the “V-Lab stress test”—that employs only publicly available market data. We …

The US bank stress tests aim to improve financial system stability. However, they may also
affect bank credit supply. We formulate and test opposing hypotheses about these effects …

We study real-efficiency implications of disclosing public information in a model with multiple
dimensions of uncertainty where market prices convey information to a real decision maker …

This paper investigates the extent to which delayed expected loan loss recognition (DELR)
is associated with greater vulnerability of banks to three distinct dimensions of risk:(1) stock …

Money markets are fundamentally different from stock markets. Stock markets are about
price discovery for the purpose of allocating risk efficiently. Money markets are about …