We exploit organizational reforms in a foreign-owned bank in Central-East Europe to study the implementation of modern …

the sovereign debt crisis. This paper investigates the impact of this announcement on bank share prices, bank CDS spreads … and sovereign CDS spreads. The main private beneficiaries were bank creditors, especially of banks heavily exposed to … public finances and banking systems heavily exposed to southern Europe and Ireland benefited, as evidenced by lower sovereign …

This paper analyses two aspects of banking crises: the choices that banks make to passively roll over loans in default …

. For an international sample of banks, this paper investigates the impact of government indebtedness and deficits on bank … stock prices and CDS spreads. Overall, bank stock prices reflect a negative capitalization of government debt and they … valuation in countries running large fiscal deficits. Furthermore, the change in bank CDS spreads in 2008 relative to 2007 …

, and regulations that can be put in place to reduce moral hazard induced by implicit guarantees to the banking sector. …

the security level for each bank in each period, we find that during the crisis, banks with higher trading expertise …

to liquidity assistance as a solution to forbearance. Faced with a bank that chooses capital and liquidity, the … credible, while always bailing out causes moral hazard. In equilibrium, the bank chooses above minimum capital and liquidity … is higher for a regulator more concerned about bank failure, and when the bailout penalty for the bank is higher; this …

We study the effects of a bank’s engagement in trading. Traditional banking is relationship-based: not scalable, long …-based: scalable, short-term, capital constrained, and with the ability to generate risk from concentrated positions. When a bank … inefficiencies. A bank may allocate too much capital to trading ex-post, compromising the incentives to build relationships ex …

Today’s regulatory rules, especially the easily-manipulated measures of regulatory capital, have led to costly bank … failures. We design a robust regulatory system such that (i) bank losses are credibly borne by the private sector (ii …) systemically important institutions cannot collapse suddenly; (iii) bank investment is counter-cyclical; and (iv) regulatory …