-equations model that specifies the probability of a bailout and banks’ risk taking.We identify the effect of expected bailout …-2006. The marginal effect of risk with respect to bailout expectations is 7.2 basis points. A change of bailout expectations by … targeting bank management and, to a lesser extent, penalties mitigate moral hazard. Weak interventions, such as warnings, do not …

.5 percentage points due to weak-bank attachment, representing between 8% and 36% of aggregate job losses …

market data on bank stocks in daily frequency. Considering debt service payments with different maturities this term …% during the same period. -- Banking crisis ; bank default ; option pricing theory ; compound option ; liability structure …

affect the likelihood and the timing of bank recovery. Severe regulatory measures increase both the likelihood of recovery … conditions also matter for bank recovery. Hence, concerted micro- and macro-prudential policies are key to facilitate distressed … bank recovery. -- Bank distress ; capital support ; regulation ; recovery …

carried out by the central bank (“Deutsche Bundesbank, BBK”) in cooperation with the Federal Financial Supervisory Authority …’s ordinal grading by a purely quantitative CAMEL covariate vector, which is standard in many bank rating models, and we also … include the bank inspector’s qualitative risk assessment into the model. We find that not only the quantitative CAMEL vector …

This paper analyses the role of bank-related constraints in explaining the sharp slowdown in bank lending to non … individual responses of the banks participating in the Eurosystem's Bank Lending Survey with the corresponding micro data on loan … quantities and prices. Our main finding is that bank-related supply and demand-side indicators were both important in explaining …