We investigate the impact of the stance and path of monetary policy on the level of credit risk of individual bank … loans and on lending standards. We employ the Credit Register of the Bank of Spain that contains detailed monthly … – generating almost twenty-three million bank loan records in total. Spanish monetary conditions were exogenously determined during …

short-run; leverage requirements reduce default risk but may significantly reduce bank value; mispriced deposit insurance …

pre-crisis bank behavior, and suggest implications for the optimal design of capital regulation. …

competitive environment affect bank monitoring choices and the effectiveness of capital regulation? Our approach deviates from the …

We examine the interdependency between loan officer compensation contracts and commercial bank internal reporting … systems (IRSs). The optimal incentive contract for bank loan officers may require the bank headquarters to commit not to act … information flow within the bank. We show that origination fees for loan officers emerge naturally as part of the optimal contract …

level of bank capital is. We use empirical evidence on UK banks to assess costs; we use data from shocks to incomes from a …

We investigate the optimal regulation of financial conglomerates that combine a bank and a non-bank financial … not only of the present debate on the regulation of financial conglomerates but also in the light of existing US bank …

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 …