risk factors, we separate the bank-specific selection and monitoring abilities from the composition of the loan portfolio …, on average, lower loan losses, (b) the loss rate of a given industry in a bank's loan portfolio is lower if the bank has …

then use the model to run a top-down stress test and simulate losses on the individual bank level for the years from 2018 …

lending behavior and risk sensitivity of a risk-neutral bank. CDS contracts may be used to hedge a bank’s credit risk exposure … at a certain (potentially distorted) price. Regulation is found to induce the risk-neutral bank to behave in a more risk … credit risk. Under the substitution approach in Basel II (and III) a risk-neutral bank will over-, fully or under-hedge its …

using a new method, the construction of tailored hypothetical bank competitors. …

observe provisioning practices before and after disclosure becomes mandatory. Our findings suggest that bank managers use loan … pressure and highlights the role of depositors and public pressure in the monitoring of bank managers. We exploit cross …