Bank risk-based capital (RBC) standards require banks to hold differing amounts of capital for different classes of … weights accurately reflect bank asset risk, we find that the weights fail even in their limited goal of correctly quantifying … are considered in the RBC regulations. We also examine other types of bank risk by estimating a simple factor model that …

Regulation consists of rulemaking and enforcement. Economic theory offers two complementary rationales for regulating … and efficiency across society as a whole. Agency-cost theory recognizes that incentive conflicts and coordination problems … financial services by improving incentives to perform contractual obligations in stress- stressful situations. These private …

This study examines the misallocation of credit in Japan associated with the perverse incentives of banks to provide … condition, and these firms continue to perform poorly after receiving additional bank financing. Troubled Japanese banks …

depression, this paper embeds a trade-off theory of capital structure into a real business cycle model with a small, time …

Yes, it did. We use exogenous variation in banks' incentives to conform to the standards of the Community Reinvestment …

exposure in bad times. We apply this idea to bank risk measurement. We find that banks with high accounting return on equity … triggered by the collapse of Silicon Valley Bank. ROE predicts systematic tail risk much better than conventional measures based …

macroeconomic and bank regulatory reform. Bank regulatory policy promoted privatization, financial liberalization, and free entry …. Argentina's bank regulatory system now is widely regarded as one of the two or three most successful among emerging market …