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 …

banks for each request. We show that households typically are not prudent risk managers but prioritize the minimization of … current mortgage payments over the risk of possible hikes in future mortgage payments. We also provide evidence that banks do …

relatively low market volatility may have unintended consequences for banks' risk exposure. …

We analyze domestic, foreign, and central banks holdings of public debt for 31 countries for the period of 1989 … banks' portfolio of public debt and reduces the percentage holdings in the case of central banks. Better sovereign ratings … also increase (decrease) the share of commercial (central) banks' holdings. Furthermore, the effects of an increment in the …

-regulated banks of similar size in neighboring U.S. states with different liability regimes during the Great Depression. The distress … rate of limited liability banks was 29% higher than that of banks with enhanced liability. Results are robust to a diff …-in-diff analysis incorporating nationally-regulated banks (which faced the same regulations everywhere) and are not driven by other …