This paper analyzes the effect of the removal of government guarantees on bank risk taking. We exploit the removal of …

the default risk of banks designated as globally systemically important by the Financial Stability Board. We find that … bank market values hardly respond to changes in the default risk of individual systemic banks. Together, however, changes … in systemic banks’ default risk explain a substantial part of changes in other banks’ market values. This result is …

This paper seeks to understand the interplay between banks, bank regulation, sovereign default risk and central bank … regulators in risky countries have an incentive to allow their banks to hold home risky bonds and risk defaults, while regulators … cheaply, effectively shifting the risk of some of the potential sovereign default losses on the common central bank. …

these costs. Bank levies attempt to internalize systemic risk and increase the costs of leverage. This paper evaluates the …

financial transactions tax is entirely neutral. Second, in a model with correlated investment risk and short-term financing of …

about bank asset risk. The regulator can either (1) make bank capital requirements contingent on credit ratings; or (2) set … constrain high risk bank investment without simultaneously reducing overall investment volume. However, if collusion between the …