Traditional theory suggests that high franchise value limits bank risk-taking incentives. Then why did many banks with … paper attempts to reconcile theory and evidence. We consider a setup where a bank takes risk by levering up, to invest in … risky market-based instruments. High franchise value allows the bank to borrow more, so it can take risk on a larger scale …

In this study we disentangle two dimensions of banks' systemic risk: the level of bank tail risk and the linkage … between a bank's tail risk and severe shocks in the financial system. We employ a measure of the systemic risk of financial … bank characteristics are related to bank tail risk and systemic linkage. The interrelationship between bank characteristics …

evidence of a direct effect; research focuses on the indirect effects of capital requirements on credit supply, bank asset risk … better-capitalized banks enhances financial stability by reducing bank risk-taking incentives and increasing banks' buffers …

concluded, that the theoretical recommendations are to a certain degree already applied in practice. Examples are risk …

This study aims at assessing empirically the determinants of changes in risk-weighted bank capital ratios in the 1990s … in most cases either banks value the risk of their portfolio higher than the outcome generated by the BIS-risk weighting …

emerges from the theory on risk management, both from a market and a firm perspective. After describing the Dutch …

The proposed risk sensitive minimum requirements of the new Basel capital accord have raised concerns about possible …

. Borrowers' financial health, regardless of disclosure rules. We show that uncertainty about fundamentals changes the risk …