the security level for each bank in each period, we find that during the crisis, banks with higher trading expertise …

pre-crisis bank behavior, and suggest implications for the optimal design of capital regulation. …

The traditional theory of commercial banking explains maturity transformation and liquidity provision assuming no … asymmetric information and no excess profits. It captures the possibility of bank runs and business cycle risk; but it ignores … Commission on Banking (2011), chaired by Sir John Vickers. …

deposits. Transparency and bond market development can eliminate overlending problems and prevent banking crises. …Conventional wisdom holds that overlending problems and banking crises in open economies are provoked by investor moral …

) 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 …

the sovereign debt crisis. This paper investigates the impact of this announcement on bank share prices, bank CDS spreads … and sovereign CDS spreads. The main private beneficiaries were bank creditors, especially of banks heavily exposed to … public finances and banking systems heavily exposed to southern Europe and Ireland benefited, as evidenced by lower sovereign …

. For an international sample of banks, this paper investigates the impact of government indebtedness and deficits on bank … stock prices and CDS spreads. Overall, bank stock prices reflect a negative capitalization of government debt and they … valuation in countries running large fiscal deficits. Furthermore, the change in bank CDS spreads in 2008 relative to 2007 …

, and regulations that can be put in place to reduce moral hazard induced by implicit guarantees to the banking sector. …

to liquidity assistance as a solution to forbearance. Faced with a bank that chooses capital and liquidity, the … credible, while always bailing out causes moral hazard. In equilibrium, the bank chooses above minimum capital and liquidity … is higher for a regulator more concerned about bank failure, and when the bailout penalty for the bank is higher; this …