This paper studies the contracting problem between banks and their bankers, embedded in a competitive labour market for … banker talent.  To motivate effort banks must use some variable remuneration.  Such remuneration introduces a risk … between banks for bankers rises it becomes more expensive to manage the risk-shifting problem than the moral hazard problem …

calibrated against UK data. The model comprises a household sector, three active heterogeneous banks, a central bank … in our model, i.e. banks` probabilities of default and banks` profits - to a proxy of welfare. …

patterns. The paper also suggests an important role for banks in helping predators accumulate, and avoid the disclosure of …

The objective of this paper is to propose a model to assess risk for banks. Its main innovation is to incorporate … endogenous interaction between banks, recognising that the actual risk to which an individual bank is exposed also depends on its … interaction with other banks and other private sector agents. To this end, we develop a two-period general equilibrium model with …

unweighted leverage ratio, we find the risk-weighted asset ratio to be a superior predictor of bank failure when banks operate … leverage ratio is the more reliable predictor.  However, when banks do not operate under Basel II rules, both ratios perform … banks with low initial levels of Tier 1 capital and in banks that adopted Basel II rules early.  We find tangible common …

Measures of central banks' independence and central banks' accountability which are based on an interpretation of their … policy, the crucial considerations relate to how central banks and other policymakers behave. The pattern of incentives is …

covering the period 1989-1996. Significant scale economies are found for large banks. Most firms are found to increasingly … suffer from excess labour. For French and German banks, the impact of labour market rigidities seems considerable. The … relative uncompetitiveness of the cost position of French and German banks appears to be entirely due to high labour prices and …