incentives to take risk and raise failure probabilities. The competition-stability trade-off is characterized and the … implications of the analysis for regulation and competition policy are derived. It is found that optimal regulation may depend on …

regulation on the probability of a crisis. We test this relationship by applying a Probit model of a non-linear specification to …: it rises as regulation stringency moves from low to medium levels and falls from medium to high levels. Countries located …

the public, long-term systemic risk among banks tends to increase. From the dynamic perspective, bank penalties represent …We analyze link between mortgage-related regulatory penalties levied on banks and the level of systemic risk in the U ….S. banking industry. We employ a frequency decomposition of volatility spillovers (connectedness) to assess system-wide risk …

. There are two main results: First, if all banks have enough liquidity so that they can honor their short-term obligations, a … financial transactions tax is entirely neutral. Second, in a model with correlated investment risk and short-term financing of …

inclusion (together with some control variables) on some measures of financial stability, including bank non-performing loans … and bank Z-scores. We find some evidence that an increased share of lending to small and medium-sized enterprises (SMEs …

. Asian economies are often characterized as having bank-dominated financial systems and underdeveloped capital markets, in …