Traditional theory suggests that higher bank profitability (or franchise value) dissuades bank risk-taking. We … highlight an opposite effect: higher profitability loosens bank borrowing constraints. This enables profitable banks to take … risk on a larger scale, inducing risk-taking. This effect is more pronounced when bank leverage constraints are looser, or …

the security level for each bank in each period, we find that during the crisis, banks with higher trading expertise …

Regulatory bank levies set incentives for banks to reduce leverage. At the same time, corporate income taxation makes … funding through debt more attractive. In this paper, we explore how regulatory levies affect bank capital structure, depending … on corporate income taxation. Based on bank balance sheet data from 2006 to 2014 for a panel of EU-banks, our analysis …

We develop a model of bank risk-taking with strategic sovereign default risk. Domestic banks invest in real projects … their default risks through purchases of bonds. But, for high debt levels, this influence is lost since bank and government …

German banks' ownership structure, heterogeneity in the states' fiscal strength and detailed bank-level panel data on German … banks' state bond portfolio on the security- and bank-level for the time period Q4:2005-Q2:2014. Results show that home …

We investigate the relationship between bank complexity and bank risk-taking using German banking data over the period … 2005-2017. We find that more complex banking organizations tend to take on more risk, but that this complexity-risk nexus …

calculating and presentation of the data. Based on a sample of CbCRs published by EU-headquartered multinational bank groups, we … analyze the reporting behavior and the degree of transparency across the reports. We observe a large heterogeneity with …, with CbCRs prepared by bank groups from the United Kingdom and Germany being the most transparent. Inconsistencies in …

This study investigates the bank competition-stability nexus using a unique regulatory dataset provided by the Deutsche … Bundesbank over the period 1994 to 2010. First, we use outright bank defaults as the most direct measure of bank risk available … and contrast the results to weaker forms of bank distress. Second, we control for a wide array of different time …