Recently, banking literature has had a quest for appropriate pricing of bank loans under the new Basel II rules and has … price bank's corporate loans, aiming at making bank managers aware of the creation/destruction of shareholder value. We show …

We survey 149 leading academic researchers on bank capital regulation. The median (average) respondent prefers a 10 … strongly an expert believes that higher capital requirements would increase the cost of bank lending …

We survey 149 leading academic researchers on bank capital regulation. The median (average) respondent prefers a 10 … strongly an expert believes that higher capital requirements would increase the cost of bank lending …

Formal enforcement actions issued against banks for violations of laws and regulations related to safety and soundness … enforcement actions issued against U.S. banks, we show that they have a strong negative effect on price terms (loan spreads and … been much higher, while punished banks intensify use of collateral …

Do banks use credit default swap hedging to substitute for loan sales? By tracking banks' lending exposures and CDS … positions on individual firms, we find that banks use CDS hedging to complement rather than to substitute for loan sales …. Consequently, bank loan sales are higher for firms that are actively traded in the CDS market. In addition, we find evidence that …

disciplining banks. Under our proposal, investors buy the subdebt of a bank only if they receive favourable information about the … bank, and the bank is subject to a regulatory examination if it fails to issue subdebt. By forcing banks to be examined …-destroying actions to benefit themselves, but may also encourage banks to lower asset risk. It shows that subdebt regulation and bank …

We investigate the effects of credit ratings-contingent financial regulation on foreign bank lending behavior. We … examine the sensitivity of international bank flows to debtor countries' sovereign credit rating changes before and after the … implementation of Basel 2 rules for assessing banks' credit risk under the standardized approach. This evidence is consistent with …

This study proposes an information asymmetry hypothesis to examine why bank credit ratings vary among countries even … when bank financial ratios remain constant. Countries are divided among those with low and high information asymmetry. The … asymmetries. Countries wishing to improve the credit ratings of their banks thus should reduce information asymmetry …

​We test five hypotheses on whether banks use CDS to hedge corporate loans, provide credit enhancements, obtain … regulatory capital relief, and exploit banking relationship and private information. Linking large banks' CDS positions and … hypotheses, but mixed evidence for the hedging, banking relationship, and private information hypotheses. Banks buy and sell more …