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 …

highlight an opposite effect: higher profitability loosens bank borrowing constraints. This enables profitable banks to take …

We study how contingent capital affects banks' risk choices. When triggered in highly levered states, going …

In general, banks play a growth-enhancing role for the real economy. However, distorted incentives for banks …, depositors, and regulators in connection with bank insolvency may corrupt banks' credit allocation and monitoring decisions …, leading to suboptimal real economic outcomes. A rules-based prompt resolution regime for insolvent banks may reestablish the …

. As we show, the first two loss absorption mechanisms unambiguously improve a bank’s stability of funding position. By … uncertainty regarding a bank’s ex post solvency position. Bank managers, investors as well as supervisors and regulators should be …

system. In contrast, the SLS focusses on the problematic banks which suffer a liquidity shortfall. These measures provide an …In this paper we introduce two measures, the Systemic Liquidity Buffer (SLB) and the Systemic Liquidity Shortfall (SLS …) to assess liquidity in the banking system. The SLB takes an aggregated perspective on liquidity risks in the banking …

recourse to the LOLR facility (a) to derive banks’ willingness-to-pay for liquidity through a one-week repo and (b) to show … results suggest (i) that banks’ willingness-to-pay for liquidity indeed reflects refinancing conditions in the interbank …We use a unique data set that comprises each bank’s bids in the Eurosystem’s main refinancing operations and its …

The paper investigates the optimal design of bank bailouts. Under three types of ex post moral hazard that tempt banks … but the last instrument has a damaging impact. As to bad debts and the cleaning of banks' balance sheets, asset insurance … and equity capital motivate banks to disclose loan losses. In some cases, prohibition of dividends or limits on …

lending behavior and risk sensitivity of a risk-neutral bank. CDS contracts may be used to hedge a bank’s credit risk exposure … the Basel II (and III) regulations to “strengthen the soundness and stability of banks”. --Banking ; regulation ; credit …