the design of the loss absorption mechanism affects the stability of bank funding and distinguish between Conversion …. As we show, the first two loss absorption mechanisms unambiguously improve a bank's stability of funding position. By … contrast, the latter type of loss absorption mechanism can increase solvency risk and, moreover, is identified as a source of …

at a certain (potentially distorted) price. Regulation is found to induce the risk-neutral bank to behave in a more risk … interaction between capital adequacy regulation and credit risk transfer with credit default swaps (CDS) including its effect on … lending behavior and risk sensitivity of a risk-neutral bank. CDS contracts may be used to hedge a bank's credit risk exposure …

German banks experienced a merger wave throughout the 1990s. However, the success of bank mergers remains a continuous …

at a certain (potentially distorted) price. Regulation is found to induce the risk-neutral bank to behave in a more risk … interaction between capital adequacy regulation and credit risk transfer with credit default swaps (CDS) including its effect on … lending behavior and risk sensitivity of a risk-neutral bank. CDS contracts may be used to hedge a bank's credit risk exposure …

affect the likelihood and the timing of bank recovery. Severe regulatory measures increase both the likelihood of recovery … conditions also matter for bank recovery. Hence, concerted micro- and macro-prudential policies are key to facilitate distressed … bank recovery. …

The subprime crisis revealed that the adoption of suitable systems for the management of credit risk is of utmost … assessing the capital adequacy. This paper investigates whether decisions on total risk-based capital ratios are channeled … quantitative models in a new perspective. This knowledge may prove valuable for regulators who aim to understand bank behaviour and …

heterogeneity in the balance sheet characteristics that affect banks' responses to liquidity risk. Overall, bank balance sheet … studies conducted in 11 countries to explore liquidity risk transmission. Among the main results is, first, that explanatory … power of the empirical model is higher for domestic lending than for international lending. Second, how liquidity risk …

potential endogeneity which are usually inherent to research into the real economic implications of bank regulation. We find a …, depositors, and regulators in connection with bank insolvency may corrupt banks' credit allocation and monitoring decisions … dependent on bank financing. Our findings are robust to various specifications. Investigating the transmission channels of the …