ABSTRACT. Rochet studies how one might protect central banks while preserving the flexibility of the current interbank market. Landier and Ueda introduce the benchmark Modigliani-Miller Framework, assume no scope for debt renegotiation and compares several restructuring options under fixed restructuring surplus to achieve the target default probability of a bank, and examine how the restructuring design affects the surplus. Barth et al. seek to identify which approach to regulation and supervision best enhances bank performance.

JEL: E58, G24