We study the effects of a bank's engagement in trading. Traditional banking is relationship-based: not scalable, long …-based: scalable, shortterm, capital constrained, and with the ability to generate risk from concentrated positions. When a bank … inefficiencies. A bank may allocate too much capital to trading ex-post, compromising the incentives to build relationships ex …

the real economy. The study also runs an empirical exercise to estimate the costs of bank narrowness and draws policy …

rules, supervision, and market discipline-of the bank regulatory framework envisioned by the New Basel Accord (Basel II). It …

banks coupled with efforts to enhance risk awareness and strengthen home-host coordination. The Croatian National Bank (CNB …) has put in place an effective bank supervision framework. The assessment reflected a legal and regulatory framework …

noncore liabilities concept developed in recent literature to encompass all noncore liabilities of both bank and nonbank …