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 … value, and a risk measure, this paper develops a semi-parametric model for estimating the critical level of bank risk at …

Foreign bank entrants into emerging markets are usually thought to improve the condition and performance of acquired … institutions, and more generally to enhance local financial stability. We use bank-specific data for a range of Latin American … strength ratings of local banks acquired by foreign entities generally show a slight improvement relative to their domestic …

Remarks at the Center for Transnational Legal Studies Seminar on the Impact of U.S. Regulatory Reform on Global Banks …

distribution for a typical large, internationally active bank. This technique allows us to incorporate realistic marginal …

serve the public interest. We highlight the importance of information in addressing the public’s desire for banks to be safe … directly motivate potential producers of information by changing their incentives. Traditional approaches to bank governance …