In this paper, we provide an overview of the concerns surrounding the variations in the calculation of risk … actual and perceived problems with RWAs, and improve the use of risk-sensitive capital ratios. …

find evidence that loan growth became more sensitive to some risk factors. Our study suggests that the upcoming adoption of …

We study how investors account for the riskiness of banks' risk-weighted assets (RWA) by examining the determinants of … stock returns and market measures of risk. We find that banks with higher RWA had lower stock returns over the US and … European crises. This relationship is weaker in Europe where banks can use Basel II internal risk models. For large banks …

convey to bank shareholders when market and credit risk regulatory capital requirements are set using bank internal model … estimates. These subsidies are not uniform across the risk spectrum, and, as a consequence, internal model regulatory capital …

We identify different sources of risk as important determinants of banks' corporate structures when expanding into new … markets. Subsidiary-based corporate structures benefit from greater protection against economic risk because of affiliate …-level limited liability, but are more exposed to the risk of capital expropriation than are branches. Thus, branch-based structures …

high household debt. Financial instability is a tail risk, but heightened vigilance is warranted. The Bank of Canada has …