regulation on the probability of a crisis. We test this relationship by applying a Probit model of a non-linear specification to …: it rises as regulation stringency moves from low to medium levels and falls from medium to high levels. Countries located …

III rules, thus suggesting a 'race to the top' in capital standards. We study regulatory competition when banks are … pool quality of banks in each country and inflict negative externalities on neighboring jurisdictions by shifting risks to … coordinated ones when governments care equally about bank profits, taxpayers, and consumers. …

This paper focuses on the consequences of cross-border banking and entry of multi-national banks (MNBs) for banking … supervision and regulation. When a MNB expands internationally with subsidiaries, the MNB operates under the legislation of … left to the national regulators. An important issue is whether the decentralized approach to regulation of MNBs creates …

We document that central banks are significantly more likely to report slightly positive profits than slightly negative … profits. The discontinuity in the profit distribution is (i) more pronounced amid greater political or public pressure, the …. These findings indicate that profitability concerns, while absent from standard theoretical models of central banking, are …

We examine the profitability of cross-ownership in an oligopolistic industry where firms compete as Cournot rivals. We … over to the case of non-renewable resource industries. The profitability of a symmetric cross-ownership can be positive …

allowances on leverage. We show that TDA act as a complement to debt leverage, generating a negative leverage-profitability …

profit. Setting up a model that allows for profitable and loss-making affiliates of multinationals, we show that profit … equilibrium, affiliates might over-invest and the bunching-related investment effects generate a tendency for too high profit …

rating agency and the bank corrupts rating quality, rating-independent regulation enhances welfare. The welfare benefits are …This paper models the strategic interaction between a rating agency, a bank and a bank regulator who lacks information … about bank asset risk. The regulator can either (1) make bank capital requirements contingent on credit ratings; or (2) set …

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 …