This paper models a financial sector in which there is a feedback between individual bank risk and aggregate funding … premia on that market push up bank risk taking, leading to multiple equilibria. The model identifies shifts among equilibria … as a function of parameter shocks. Measures that reduce individual bank default risk within an equilibrium can actually …

and examine the implications for bank risk. We find that banks use LLPs to manage the level and volatility of earnings … expected and unexpected losses that affects bank risk and profitability. …

How damaging is competition between bank regulators? This paper develops a model in which both banks' risk profile and …. The paper also shows how complex balance sheet items give rise to a gradual rise in bank risk, followed by a sudden …

bank's z -scores through the network of the interbank market. Larger dependence on interbank borrowing and lending … increases bank risk. But only interbank funding exposures to other banks in the system exhibit significant spill …-over coefficients. Spatial lags for lending are insignificant while borrowing from other banks reduces individual bank risk if neighbors …

This paper gives an overview of the recent literature on bank business models, structured along what we deem to be the … supervision towards the analysis of bank business models with a sound economic basis. The bottom-line for supervisors - in our … view - is that it is essential to understand where the profit comes from and what risks the bank or the banking sector is …

This paper reviews studies exploring how higher bank capital requirements affect economic growth. There is little … evidence of a direct effect; research focuses on the indirect effects of capital requirements on credit supply, bank asset risk …, and cost of bank capital, which in turn can affect economic growth. Banks facing higher capital requirements can reduce …

We examine whether bank earnings volatility depends on bank size and the degree of concentration in the banking sector … quality of management, leverage, and diversification , we find that bank size reduces return volatility. The negative impact … of bank size on bank earnings volatility decreases (in absolute terms) with market concentration. We also find that …

the largest Dutch banks over the period January 2004 to April 2010. The dynamic interrelations among instruments of bank … wholesale lending. Second, banks hoard liquidity in the form of liquid bonds and central bank reserves. Third, banks conduct …