Other papers include Diamond and Rajan (2001), who suggest that the fragility inherent in runnable deposit finance acts as a useful disciplinary device for bank management, and Kashyap, Rajan, and Stein (2002), who  BIS central bankers’ speeches  1  Our work fits into this third category, with two twists relative to previous research.
First, we stress the fact that on the asset side, banks hold not only loans, but like their shadowbanking counterparts, they also hold securities, often in very substantial amounts. Moreover, these securities holdings have a particular pattern.