This paper seeks to understand the interplay between banks, bank regulation, sovereign default risk and central bank … guarantees in a monetary union. I assume that banks can use sovereign bonds for repurchase agreements with a common central bank … in other “safe” countries will impose tighter regulation. As a result, governments in risky countries get to borrow more …

rating agency and the bank corrupts rating quality, rating-independent regulation enhances welfare. The welfare benefits are …This paper models the strategic interaction between a rating agency, a bank and a bank regulator who lacks information … about bank asset risk. The regulator can either (1) make bank capital requirements contingent on credit ratings; or (2) set …

implications of the analysis for regulation and competition policy are derived. It is found that optimal regulation may depend on …

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

and study if the bank losses can be traced to the quality of bank governance. For this purpose, we examine the …” are then related directly to the magnitude of bank losses in the recent financial crisis. Our data confirms that … supervisory board (in-)competence in finance is related to losses in the financial crisis. Improved bank governance is therefore a …