particular, I find that a bank affiliated with a multi-bank holding company is significantly safer than either a stand-alone bank … or a bank affiliated with a one-bank holding company. Not only does affiliation reduce the probability of future … other banks. Moreover, the effects of affiliation are strengthened for an expanding bank holding company. However, the …

value, and a risk measure, this paper develops a semi-parametric model for estimating the critical level of bank risk at …In moral hazard models, bank shareholders have incentives to transfer wealth from the deposit insurer - that is …, maximize put option value - by pursuing riskier strategies. For safe banks with large charter value, however, the risk …

had a measurable effect on the stock market valuation of the forty-two bank holding companies subject to the SEC order. I …

studies conducted in eleven countries to explore liquidity risk transmission. Among the main results is, first, that … explanatory power of the empirical model is higher for domestic lending than for international lending. Second, how liquidity risk … affects bank lending depends on whether the banks are drawing on official-sector liquidity facilities. Third, liquidity …

Remarks at Institute of International Bankers Seminar on Risk Management and Regulatory/Examinations Compliance Issues …

Many large U.S. bank holding companies (BHCs) continued to pay dividends during the recent financial crisis, even as … financial market conditions deteriorated, large losses accumulated, and emergency capital and liquidity were being provided by …

estimate bank biases at the credit level by comparing bank-generated risk estimates within loan syndicates. The biases are …This paper investigates the incentives for banks to bias their internally generated risk estimates. We are able to … positively correlated with measures of regulatory capital, even in the presence of bank fixed effects, consistent with an effort …

. Evidence from cross-state enforcement actions of regulators shows that gross inflows into regulation and gross outflows from … regulation are both higher during periods of intense enforcement, though gross outflows are significantly smaller in magnitude …

-causes higher solvency risk. These results point toward a tight interaction between solvency and liquidity risk over time. My …Pierret (2015) presents empirical analysis of the solvency-liquidity nexus for the banking system, documenting that a … shock to the level of banks’ solvency risk is followed by lower short-term debt. Conversely, higher short-term debt Granger …