Stable Funding ratios of Basel III.  When bank failures are socially costly, microprudential regulation of leverage is also …

This paper studies the consequences of a regulatory pay cap in proportion to assets onbank risk, bank value, and bank … cap encourages diversi cation and reduces the need a bank has to focus ona limited number of asset classes. The cap can be …

times of a panic or financial crisis the Central Bank automatically satisfies the increased demand for money.  Thus, it …

We model the interaction between two economies where banks exhibit both adverse selection and moral hazard and bank … regulators try to resolve these problems. We find that liberalising bank capital flows between economies reduces total welfare by …

We analyse a model in which bank deposits are insured and there is an exogenous cost of bank capital. The former effect … results in bank overinvestment and the latter in underinvestment. Regulatory capital requirements introduce investment … upon the home bank`s riskiness, the extent of international diversification, and the liability structure (branch or …

We investigate the optimal regulation of financial conglomerates which 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 …

bank failure during the 2007-10 crisis, and to search for evidence of manipulated Basel risk-weights.  Compared with the … unweighted leverage ratio, we find the risk-weighted asset ratio to be a superior predictor of bank failure when banks operate … equity and Tier 1 ratios to be better predictors of bank distress than broader measures of capital, and identify market …