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

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 …

Switzerland. For identification, we compare changes in the behavior of banks that had different fractions of their central bank …

the central bank after a liquidity shock creates a new channel of policy transmission that leads to a sharp decrease in …

of increased bank capital in terms of reduced loans could be substantial, there are good reasons to believe that the … between the capitalization of the banking sector and bank loans using panel cointegration models. We study the evolution of … the German economy for the past 60 years. We find no evidence for a negative impact of bank capital on business loans …

advantage. Countries specialising in bank dependent sectors favour the development of the banking sector. Simultaneously …. To empirically investigate our model's predictions, we construct a measure of sector bank dependence and establish a …