We show how banks' excessive risk-taking, stemming from informational asymmetries in loan markets, can lead to an …

volumes remain essentially unchanged, because banks previously specializing in low-risk lending can adapt by granting both low …

for the remaining three quintiles of listed European banks. This observation suggests that the Basel process has succeeded … in containing systemic risk for the majority of European banks but not for the largest and most risky institutions. In … risk. Based on this evidence, the sub-prime crisis found especially the largest and more systemic banks ill-prepared and …

economy, the cost of liquidity provision to banks, and the government's reputational cost of breaking the deposit guarantee …