This paper investigates the incentives for banks to bias their internally generated risk estimates. We are able to … estimate bank biases at the credit level by comparing bank-generated risk estimates within loan syndicates. The biases are … by low-capital banks to improve regulatory ratios. At the portfolio level, the difference in borrower probability of …

This paper empirically investigates banks’ investment allocations over the recent business cycle. I identify … the pre-recession period, banks lend 38 percent of incremental deposits; however, during the downturn, banks favor liquid … assets and lending allocations fall to 22 percent. Banks with low risk tolerance or less access to liquidity are particularly …

the continued popularity of checks. An underlying assumption of these studies is that check float operates as a pure … studies, we show that float can also lead to inefficiencies if banks engage in costly activities designed to accelerate check …

following the Y2K date change and the 9/11/2001 crisis - events that required the two central banks to deviate significantly …

-term interest rates to the operating procedures of the countries' central banks. Previous studies have focused on key features of …