in future states. When risks rise or risk management strengthens, a bank reallocates capital to the more efficient unit …

Bank capital ratios have increased steadily since the financial crisis. For a sample of 94 large banks from advanced …

channel, one bank's capital policy affects the equity value and risk of default of other banks. In a model where such … externalities are strong, bank capital takes on the attribute of a public good, where the private equilibrium features excessive … implications of the model with observed bank behavior during the crisis of 2007-09 …

This paper investigates how the prolonged period of low interest rates affects bank intermediation activity. We use …

similar data processing systems, possess "general" signals regarding the borrower's quality. However, the specialized bank …

A model of imperfectly competitive banks is examined under asymmetric information about borrower quality. Greater bank … empirical results on the relationship between bank competition and financial stability. The model can be used to define a …

III to bank lending spreads. The higher cost associated with a one percentage point increase in the capital ratio can be … recovered by increasing lending spreads by 15 basis points for a representative bank. This calculation assumes the return on … additional cost of meeting the December 2009 proposal for the Net Stable Funding Ratio (NSFR), a representative bank would need …