We analyze link between mortgage-related regulatory penalties levied on banks and the level of systemic risk in the U … the public, long-term systemic risk among banks tends to increase. From the dynamic perspective, bank penalties represent …

. Hence, banks build up larger capital buffers which (i) lowers the public losses in case of a systemic crisis and (ii …

market. Duopolistic banks can choose their levels of monitoring of firms and thus the levels of risk-taking, where the risk … both countries. In contrast, a reduction in the costs of screening foreign firms is likely to be beneficial for banks …

a difference-in-difference setting in which private domestic banks serve as the treatment group and state and foreign …-owned banks, whose deposit insurance regime does not change, serve as a control group. …

banks. We find that more competition leads to more risk taking. We also examine the effects of bank competition on the …

This paper seeks to understand the interplay between banks, bank regulation, sovereign default risk and central bank … guarantees in a monetary union. I assume that banks can use sovereign bonds for repurchase agreements with a common central bank …, and that their sovereign partially backs up any losses, should the banks not be able to repurchase the bonds. I argue that …

which banks are to be shut down before they can go bankrupt, and (ii) a loss allocation – or bailout – decision of who pays … for banks that have failed despite regulatory oversight. Each of these choices can either be taken in a centralized or in …