discipline by monitoring counterparty credit risk and theories highlighting that secured loans are less informational sensitive … provide more secured loans to replace unsecured lending, which is not consistent with speculative or precautionary liquidity …

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 …

This paper deals with the relation between excessive risk taking and capital structure in banks. Examining a quarterly … leverage is high, and that more risk taking has a negative impact on valuation of the debt of highly leveraged banks. We find … no evidence that deposit insurance is encouraging risk taking behaviour. We do find that banks with a more troubled loan …

always increases it. Regulators need to contain its reinforcing effect on liquidity risk, trading off its role in expanding … risk to unsecured creditors. We show that this triggers more frequent runs by unsecured creditors, even in the absence of … fundamental risk. This effect is separate from the liquidation externality caused by fire sales of seized collateral upon default …

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 …

case of bank default, and provides it with sufficient funds as precautionary reserves. To identify and classify healthier …