domestic and foreign bank creditors. Second, banks do not hedge their exchange rate risk. Third, there is a lending boom before …

behavior following monetary policy shocks. In a first step, we show that the sensitivity of bank profits to interest rates … income gap also predicts the sensitivity of bank lending to interest rates, both for commercial & industrial loans and for … mortgages. Quantitatively, a 100 basis point increase in the Fed funds rate leads a bank at the 75th percentile of the income …

We use payroll data on 1.2 million bank employee years in the Austrian, German, and Swiss banking sector to identify … document an economically significant correlation of incentive pay with both the level and volatility of bank trading income … bonus share in the capital markets divisions with the strength of incentive pay in unrelated bank divisions like retail …

) focus and diversification using a unique data set that is able to identify individual bank loan exposures to different … deterioration in bank monitoring quality at high levels of risk and a deterioration in bank monitoring quality upon lending … expansion into newer or competitive industries. We find that industrial loan diversification reduces bank return while …

bank suffering from liquidity shocks, we find that the unregulated bank keeps too much liquidity and monitors too little. A … central bank can alleviate the liquidity problem, but induces moral hazard. Therefore, we introduce an additional authority … that is able to bail out the bank either by injecting capital at a fixed return or by receiving an equity claim. This …

factors: cross-border externalities from bank failures and heterogeneity in bank failure costs. Based on a simple model we …

A regulator resolving a bank faces two audiences: depositors, who may run if they believe the regulator will not …

by interbank lending. This paper shows that common regulation is also a conduit for interbank contagion. One bank … behaviour can be privately to exhibit forbearance to a failing bank. We show that regulatory transparency improves confidence ex …