affected banks and by non-affected non-bank financial institutions (NBFIs)? To answer this question, we apply a difference … that insurance companies, financial enterprises, and factoring companies - but not leasing companies - and Non-EBA banks … expand their corporate lending relative to EBA banks. In particular, NBFIs use the opportunity to expand their credit …

We show that banks' risk exposure in one asset category affects how they report regulatory risk weights for another … asset category. Specifically, banks report lower credit risk weights for their loan portfolio when they face higher risk … exposure in their trading book. This relationship is especially strong for banks that have binding regulatory capital …

switching to IRB, banks' risk-weighted asset (RWA) densities are thus expected to diverge, especially across countries with … different supervisory strictness and risk levels. However, when examining 52 listed banks headquartered in 14 European countries … convergence can be entirely explained by differences in the size of the banks, loss levels, country risk, and/or time of IRB …

banks in the time period between 1995 and 2013, before the Basel III liquidity regulation to address excessive maturity …. Using a dataset that contains information on critical events of German banks, we find that financing loans using fewer … customer deposits would have been associated with a higher probability of financial distress for savings banks and credit …

matter. In response to a tightening in capital requirements, banks temporarily reduce business and real estate lending, which …

portfolio, one for market risk and one for credit risk. Similar approaches are common in banks’ internal models for economic …

-financial environment. In ”normal” states where banks do not face problems to retain enough profits to satisfy higher capital requirements … in capital requirements. In ”bad” states where banks are not able to come up with sufficient equity to satisfy capital …