Using a synthetic control research design, we find that living will regulation increases a bank’s annual cost of capital by 22 bps, or 10% of total funding costs. This effect is stronger in banks measured as systemically important before the regulation’s announcement. We interpret our findings as a reduction in Too-Big-to-Fail subsidies. The effect size is large: multiplying our bank-specific point estimates by funding size implies a subsidy reduction of $42B annually. The impact on equity drives the main effect. The impact on deposits is statistically indistinguishable from zero, passing the placebo test for our empirical strategy.

中文翻译：

---

解决“大到不能倒”

使用综合控制研究设计，我们发现生前遗嘱监管使银行的年度资本成本增加了 22 个基点，即总融资成本的 10%。这种影响在监管公布前被衡量为具有系统重要性的银行更为明显。我们将我们的发现解释为“大到不能倒”补贴的减少。效果大小很大：将我们的银行特定点估计乘以资金规模意味着每年减少 $42B 的补贴。对权益的影响驱动主效应。对存款的影响在统计上与零没有区别，通过了我们经验策略的安慰剂测试。