of capital markets and banking systems as well as the distribution of access to external finance across firms …

A banking union limits international bank default contagion, eliminating inefficient liquidations. For particularly low … moderate moral hazard, as the banking union encourages risk taking by systemic institutions. If banks hold opaque assets, the … net welfare effect of a banking union can be negative. Restricting the banking union mandate restores incentives …

We assess the influence of competition and capital regulation on the stability of the banking system. We particularly … competitive environment affect bank monitoring choices and the effectiveness of capital regulation? Our approach deviates from the … requirements can lead to more entry into banking, essentially by reducing the competitive strength of lower quality banks. We also …

circumstances. The model, which measures additional bank capital required to compensate for fluctuating credit risk, is a novel …

internal rating based approach. The paper considers how a bank's preference for a risk management system is affected by the … presence of supervision by bank regulators. The model uses a principal–agent setting between a bank's owner and its risk … standard approach subsequent to becoming regulated, i.e., the presence of regulation may induce a bank to decrease the quality …

margins after banking crises are higher in the most corrupt countries. …

This paper focuses on the stability aspects of cross-border banking. We first argue that cross-border banking brings …-border banking in the EU, and derive implications for its optimal form. Next, we derive metrics that allow quantifying whether cross …-border banking in a country (or region) takes a desirable form and apply these metrics to the EU countries. Our results suggest that …

find that the introduction of free banking laws stimulated the creation of new banks and led to more bank failures. Our …) leading to efficiency gains in the banking market. Our findings suggest that the more frequent bank failures occurring in a …We exploit the introduction of free banking laws in US states during the 1837-1863 period to examine the impact of …