Banks may be unable to refinance short-term liabilities in case of solvency concerns. To manage this risk, banks can … bank may choose insufficient liquidity buffers and transparency. The regulatory response is constained: while liquidity … choices, and increase refinancing risk. To be effective, liquidity requirements should be complemented by measures that …

We revisit the link between bailouts and bank risk taking. The expectation of government support to failing banks … creates moral hazard—increases bank risk taking. However, when a bank’s success depends on both its effort and the overall … invest prudently and so reduce bank risk taking. This systemic insurance effect will be relatively more important when …

banks can extract market power rents. We show that more bank competition results in lower economy-wide risk, lower bank … allocation and optimal levels of bank risk and capitalization. These results are at variance with those obtained by a large … systemic risk in the economy. …

the financial crisis. We differentiate among various types of capital ratios: the Basel risk-adjusted ratio; the leverage … capital is stronger when capital is measured by the leverage ratio rather than the risk-adjusted capital ratio; (iv) higher …

liquidity risk. We find an inverted U-shaped relationship between capital requirements and bank lending, efficiency, and welfare …This paper studies the impact of bank regulation and taxation in a dynamic model with banks exposed to credit and …

financial policy transparency and banking supervision. Financial intermediation in Algeria will be bank-based in the future, and …