Acharya, Viral V.; Mehran, Hamid; Thakor, Anjan - Federal Reserve Bank of New York - 2010
studied in banking: asset substitution (or risk shifting, e.g., making risky, negative net present value loans), managerial … risk in that all banks choose inefficiently high leverage, take excessively correlated asset risk, and, because debt is … contain the build-up of systemic risk takes the form of the regular (tier-1) capital requirement plus a “special capital …