“...The second edition of an essential text on the microeconomic foundations of banking surveys the latest research in banking theory, with new material that...”

“...Twenty years ago, most banking courses focused on either management or monetary aspects of banking, with no connecting. Since then, a microeconomic theory of...”

“...We study how relationship lending and transaction lending vary over the business cycle. We develop a model in which relationship banks gather information on...”

“...The current crisis has totally transfigured the world's financial landscape. The lessons we have derived have also transformed our perception of banking risks,...”

“...A lesson of the recent financial crisis is that the interbank market is crucial for banks facing uncertainty regarding their liquidity needs. This article...”

“...We model a systemically important financial institution that is too big (or too interconnected) to fail. Without credible regulation and strong supervision,...”

“...This paper examines the monetary policy followed during the current financial crisis from the perspective of the theory of the lender of last resort. It is...”

“...We model systemic risk in an interbank market. Banks face liquidity needs as consumers are uncertain about where they need to consume. Interbank credit lines...”

“...The recent financial crisis has shattered all standard approaches to banking regulation. Regulators now recognize that banking regulation cannot be simply...”