incentives for risk creation.When banks differ in credit opportunities, a Pigovian tax on short-term funding is efficient in … credit incentives are strongest.When banks differ instead mostly in gambling incentives (due to low charter valueor … again as efficient when capital or liquidityratios keep risk shifting incentives under control. In general, an optimal …

competitive environment affect bank monitoring choices and the effectiveness of capital regulation? Our approach deviates from the … show that competition improves the monitoring incentives of better quality banks and deteriorates the incentives of lower …

removing barriers to bank entry on bank competition and economic growth. As governments were not concerned about systemic … stability in this period, we are able to isolate the effects of bank competition from those of state implicit guarantees. We … find that the introduction of free banking laws stimulated the creation of new banks and led to more bank failures. Our …

How do near-zero interest rates affect bank competition, risk taking and regulation? I study these questions in a … insurance may induce excessive risk taking. The zero lower bound on deposit rates (ZLB) distorts bank competition and boosts … risk shifting incentives, particularly if rates are expected to remain near-zero for long. At the ZLB, capital regulation …

of low quality, i.e. high risk, loans and therefore reduces the risk of the bank loan portfolio. However, CVaR regulation …