We study the efficiency of banking regulation under financial integration. Banks freely choose the jurisdiction where …

, 2008), this paper analyses the adequate policy response to endogenous systemic liquidity risk. We analyse the feedback …Traditionally, aggregate liquidity shocks are modelled as exogenous events. Extending our previous work (Cao & Illing … between lender of last resort policy and incentives of private banks, determining the aggregate amount of liquidity available …

The paper models the interaction between risk taking in the financial sector and central bank policy for the case of … pure illiquidity risk. It is shown that, when bad states are highly unlikely, public provision of liquidity may improve the … allocation, even though it encourages more risk taking (less liquid investment) by private banks. In general, however, there is …

ratio) and size (TBA) of the industry are linked to lower sovereign risk in general. Foreign bank penetration and …We analyze the link between banking sector quality and sovereign risk in the whole European Union over 1999–2014. We … employ four different indicators of sovereign risk (including market- and opinion-based assessments), a rich set of …

liquidity risk and characterizes them. Both a solvency (leverage) and a liquidity ratio are required to control the … fund managers are more conservative the liquidity requirement has to be strengthened while the solvency one relaxed. Higher … financial intermediary is opaque) and, correspondingly, liquidity requirements should be tightened. The model is applied to …

affects other countries by estimating cross-country tax and regulation elasticities …

incentives to take risk and raise failure probabilities. The competition-stability trade-off is characterized and the … implications of the analysis for regulation and competition policy are derived. It is found that optimal regulation may depend on …

This paper analyzes the effect of the removal of government guarantees on bank risk taking. We exploit the removal of …