This paper provides the first empirical evidence on how home-country regulation and supervision affects bank risk … independently from the effect that bank balance sheet have on lending. These findings imply that loose home-country regulation and …

particular, we show that the stock market applies far greater discounts to a bank’s real estate loans and mortgage … suggests that bank balance sheets overvalue real estate related assets during economic slowdowns. Estimated discounts are … impairment. We also find that bank share prices, especially for banks with large exposures to mortgage-backed securities, react …

inefficiencies, as the various distortions can offset each other. Empirical analysis using bank-level data from the recent crisis …

. Using a model of a systemic bank suffering from liquidity shocks, we find that the unregulated bank keeps too much liquidity … induces moral hazard. Therefore, we introduce a fiscal authority that is able to bail out the bank by injecting capital. This …

create dependency between bank leverage and risk. Using a large international sample of banks this paper estimates the short … and long run effects of corporate income taxes (CIT) on bank capital structure and portfolio risk accounting for their ….8-1.4 percentage points in bank leverage and a 2-7-percentage point reduction in the average risk-weight of assets. While the estimated …

than under national resolution. Results from a numerical simulation exercise and empirical analysis using bank-level data …