If regulation fails to differentiate between priced and idiosyncratic risk, it incentivizes investors to reach for … conditionally on rating-implied regulatory risk weights. ABS investments of constrained banks tend to perform worse ex post in terms …

risk. In this model, banks face taxation, flotation costs of securities, and default costs and maximize shareholder value …

This paper investigates contagion between bank and sovereign default risk in Europe over the period 2007–2012. We … less traditional banking activities are particularly vulnerable to risk spillovers. At the country level, the debt ratio is …

by introducing a market-based capital measurement that better captures the dynamics of bank risk and returns. Evidence … confirms that these market-based capital adequacy metrics are much more sensitive to risk factors and more responsive to …

assistance on bank risk taking. Bailed-out banks initiate riskier loans and shift assets toward riskier securities after … receiving government support. However, this shift in risk occurs mostly within the same asset class and, therefore, remains … appear safer according to regulatory ratios, but show an increase in volatility and default risk. These findings are robust …

show that transition to risk-free reference rates may exacerbate this friction. The adverse impact on credit supply is …

risk, profitability and solvency in the Armenian banking sector. To account for these, we apply a GMM technique to a panel …. Regarding GDP we observe a negative influence on banks' solvency, profitability and risk. When focusing on regulatory variables …. Moreover, we find that banks belonging to international financial groups have better credit risk management than domestic banks …