' internal models, and a less risk-sensitive standardised approach. Using a unique dataset covering 7 million UK mortgages for … lenders to specialise. This leads to systemic concentration of high-risk mortgages in lenders with less sophisticated risk …

Banks often measure credit and interest rate risk separately and then add the two risk measures to determine their …: risk integration is challenging but feasible and worthwhile …

This paper addresses the trade-off between additional loss-absorbing capacity and potentially higher bank risk … increase their risk-taking. This increase in risk-taking however, should be more than outweighed by the benefits of higher …

This paper examines how banks' asset risk is affected by the level (i.e. group or business unit) at which regulatory … portfolios. However, if the risk-weighted requirement is the binding constraint at the group level,applying regulatory … impact on banks' asset risk differs across bank business models …

We study solvency contagion risk in the UK banking system from 2008 to 2015. We develop a model that only accounts for …

conversion on the risk-taking behaviour of the issuing bank. We also test for regulatory arbitrage: do banks try to maintain risk … sample selection bias, we show that CoCo bonds issuance has a strong positive effect on risk-taking behaviour, and so do … impact of CoCo bonds on risk-taking …

If a bank might be too-big-to-fail, then shareholders' optimal compensation contract encourages the executive to risk …-shift on to the taxpayer. Standard risk-reducing regulatory compensation rules -- deferred pay, equity-linked pay, debt …-like instruments in pay -- do not fully correct for excessive risk-taking caused by too-big-to-fail. By contrast, clawback regulations …

apply to the United Kingdom. We identify 29 indicators of financial stability risk, drawing from the literature on early …