Imperial College London

Professor Franklin Allen

Business School

Assoc Dean of Faculty & Res/ Dir of Brevan Howard Centre



+44 (0)20 7594 9195f.allen Website CV




2.05B52-53 Prince's GateSouth Kensington Campus






BibTex format

author = {Allen, F and Carletti, E and Marquez, R},
doi = {10.1016/j.jfineco.2014.11.003},
journal = {Journal of Financial Economics},
pages = {601--619},
title = {Deposits and bank capital structure},
url = {},
volume = {118},
year = {2015}

RIS format (EndNote, RefMan)

AB - In a model with bankruptcy costs and segmented deposit and equity markets, we endogenize the cost of equity and deposit finance for banks. Despite risk neutrality, equity capital earns a higher expected return than direct investment in risky assets. Banks hold positive capital to reduce bankruptcy costs, but there is a role for capital regulation when deposits are insured. Banks could no longer use capital when they lend to firms instead of investing directly in risky assets. This depends on whether the firms are public and compete with banks for equity capital or are private with exogenous amounts of capital.
AU - Allen,F
AU - Carletti,E
AU - Marquez,R
DO - 10.1016/j.jfineco.2014.11.003
EP - 619
PY - 2015///
SN - 0304-405X
SP - 601
TI - Deposits and bank capital structure
T2 - Journal of Financial Economics
UR -
UR -
VL - 118
ER -