III rules, thus suggesting a ‘race to the top’ in capital standards. We study regulatory competition when banks are … coordinated ones when governments care equally about bank profits, taxpayers, and consumers. …

We develop a simple model of banking regulation with two policy instruments: minimum capital requirements and … regulation. Therefore, countries are better off by harmonising regulation on an international standard. …

externalities between the two countries arise from cross-border bank ownership. The two countries face (i) a regulatory decision of … a decentralized way. In our benchmark model the two countries always agree on a centralized regulation policy. In … contrast, bailout policies are centralized only when international spillovers from cross-border bank ownership are strong, and …

stablecoin issuers raises the challenge of how to apply technology-neutral regulation so that similar risks are subject to the …

, the equilibrium loan rate spread increases, which raises bank profitability and the market-to-book value of bank capital …) restores the banking sector’s lending capacity after the short-term credit crunch induced by tighter regulation. We confirm our … model’s dynamic implications in a panel VAR estimation, which suggests that bank lending has even increased in the long …

choose their portfolio risk, bank size, and capital holdings. Banks voluntarily hold equity when the buffer effect against … larger, choose riskier portfolios, and have less equity. Binding capital requirements or levies on bank borrowing are shown …

implications of the analysis for regulation and competition policy are derived. It is found that optimal regulation may depend on … competition and stability in banking. There are two basic channels through which competition may increase instability: by … incentives to take risk and raise failure probabilities. The competition-stability trade-off is characterized and the …

This paper investigates the impact of banking prudential regulation on sovereign risk. We show that prudential … regulation reduces sovereign risk and induces governments to spend more. As a result, countries with tight prudential regulation … have lower primary budget balances and accumulate more government debt over time. We find that prudential regulation …

choose their portfolio risk, bank size, and capital holdings. Banks voluntarily hold equity when the buffer effect against … larger, choose riskier portfolios, and have less equity. Binding capital requirements or levies on bank borrowing are shown …

tightening of regulation in bad times. This is performed with an heterogeneous agent economy with occupational choice, financial …