... predecessor, the LLR of the twenty-first century lies at the intersection of monetary policy, supervision and regulation of the banking industry, and organization of the interbankmarket. The issue ... externalities between the CB, interbankmarkets, and the banking supervisor. When supervision is not perfect, so that the insolvent bank cannot be detected, interbank spreads are high and there should ... the first version of the model there are only two protagonists:5 the “banker”(who represents the collective interests of the bank s managers and shareholders) and the DIF (which subrogates the collective...