Research Question: How does the geographic diversification of a bank's deposit base affect its funding stability, funding costs, and real economic outcomes? Key findings  Impact of greater geographic diversification  Geographic diversification reduces deposit volatility and enhances funding stability  Diversification lowers funding costs by enabling a shift in liability structure  Diversification boosts liquidity creation, lending, and real economic activity  Economic mechanism  Banks are less exposed to localized deposit withdrawals shocks  Banks can reduce reliance on costlier time deposits  More stable funding enables cheaper and more efficient liability structure

Prudential authorities mandate that banks hold equity capital exceeding a share of their risk-weighted assets. How should policymakers design this central tool of financial regulation? We propose a new, unifying framework for nonlinear bank capital regulation. Adopting a perturbation approach, we characterize the positive and normative effects of reforming risk weights through sufficient statistics, including credit-supply elasticities and welfare externalities from financial intermediation. We estimate these statistics and apply the framework to evaluate the Federal Reserve's recent proposal to flatten the risk-weight schedule. Our analysis reveals nonlinear effects on credit allocation, resulting in a moderate reduction in total credit supply but a substantial rise in bank equity, enhancing bank stability. Finally, we derive novel sufficient statistics formulas for the optimal risk-weight schedule, balancing efficiency gains with risk externalities of credit supply while accommodating market failures and regulatory constraints. Numerical simulations suggest that the Fed's proposed weights are close to optimal, generating significant welfare gains for households at the expense of bankers and entrepreneurs.

In recent years, process mining has emerged as the leading Big Data technology for business process analysis. By extracting knowledge from event logs readily available in information systems, process mining provides new ways to discover, monitor, and improve processes while being agnostic to the source system. Despite its undisputed practical relevance, we have a limited understanding of how organizations realize value potentials from applying process mining in different organizational contexts. Addressing this gap, we conduct an assessing literature review by analyzing 58 papers from the literature on process mining to synthesize the existing knowledge on business value realization from process mining. Our analysis is guided by adopting the perspective of process mining embedded within its organizational context. By analyzing the dimensions of the nomological net around process mining, we contribute to the broader research field of Big Data value realization twofold. First, we uncover which benefits organizations gain by applying process mining. Second, we analyze the organizational capabilities and practices that influence how organizations use and implement process mining. In addition, we reveal how process mining leads to business value realization. Based on these results, we suggest directions for future research on process mining in the organizational context.

Although German companies have a strong innovative tradition, they must use intellectual property creatively if they are to be successful in meeting the economic challenges of the 21st century.