Bank Capital Redux: Solvency, Liquidity, and Crisis

This work is part of a larger project kindly supported by research grants from the Bundesministerium für Bildung und Forschung (BMBF) and the Institute for New Economic Thinking. Schularick acknowledges support from the Deutsche Forschungsgemeinschaft (DFG) under Germany's Excellence Strategy – EXC 2126/1– 39083886, as well as a Fellowship from the Initiative on Global Markets at the University of Chicago. We are indebted to a large number of researchers who helped with data on individual countries. Matthew Baron and Malik Mazbouri kindly shared data with us. We are particularly thankful to João Azevedo and Marco Wysietzki for outstanding research assistance. We benefited from helpful comments by conference and workshop participants attending the 2017 CESifo Area Conference on Macro, Money, and International Finance, the 5th Empirical Macroeconomics Workshop at Ghent University, the Fifth CEPR Economic History Symposium, the 6th Workshop in Financial Economics at the University of Bonn, the ECB, the NBER DAE Program Meeting, the EHA 2017 Annual Meeting, the IDB/Banco Central de Chile 2019 Workshop, and seminar participants at Bank of Finland, Bocconi University, Imperial College, SAFE Frankfurt, and UC Davis. All errors are our own. The views expressed herein are solely the responsibility of the authors and should not be interpreted as reflecting the views of the Federal Reserve Bank of New York or San Francisco, the Board of Governors of the Federal Reserve System, or the views of the National Bureau of Economic Research.

• March 23, 2017