We study the effects of a bank’s engagement in trading. Traditional banking is relationship-based: not scalable, long … leads trading in banks to become increasingly risky, so that problems in managing and regulating trading in banks will …

Under Basel III rules, banks become subject to a liquidity coverage ratio (LCR) from 2015 onwards, to promote short …

We study a politician's choice for state or private control of banks. The choice trades of lobbying contributions … maximize their rents. As state banks are less efficient, at higher level of accountability there is a shift to private control …. At the transition point there is a jumpin risk taking, as private banks do not internalize the social costs of bank …

increases, bank defaults are more frequent, and the costs of deposit insurance increase. BHCs with large banks offer higher … guarantees than BHCs with small banks, and they dominate the shadow banking sector. …

This paper deals with the relation between excessive risk taking and capital structure in banks. Examining a quarterly … dataset of U.S. banks between 1993 and 2010, we find that equity is valued higher when more risky portfolios are chosen when … leverage is high, and that more risk taking has a negative impact on valuation of the debt of highly leveraged banks. We find …

We investigate actual capital chosen by banks in presence of capital minimum requirements and ex-post penalties for …

An anticipated benefit of the prospective European Banking Union is stronger supervision of European banks. Another … benefit would be enhanced resolution of banks in distress. While national governments confine themselves to the domestic … cross-border effects within Europe are incorporated. Using a model of recapitalising banks, this paper develops indicators …