Lugar: Sala de Reuniones del Departamento de Economía. Edificio Los Madroños, 2ª planta (ECON-2026)

Ponente: Luca Gabrielle Deidda (Università di Sassari, Italia)

Título: Bank Recovery and Resolution Planning, Liquidity Management and Fragility

Abstract: We study how regulation shapes the interaction between financial fragility and bank liquidity management and propose a rationale for the complementarity between bank recovery and resolution planning. We analyze an economy in which a benevolent resolution authority sets a bank resolution plan to suspend deposit withdrawals and create a “good bank” at a cost in the event of a depositors’ run. In such a framework, banks maximize expected welfare if deciding ex-ante how to manage liquidity during runs. However, this choice is time inconsistent. Therefore, regulators need to force banks to commit to it through recovery planning.