We assess the influence of competition and capital regulation on the stability of the banking system. We particularly … competitive environment affect bank monitoring choices and the effectiveness of capital regulation? Our approach deviates from the … ask two questions: i) how does capital regulation affect (endogenous) entry; and ii) how do (exogenous) changes in the …

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 …

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 … states that retained state bank chartering policies. We argue that the fiercer bank competition following the introduction of …

standard approach subsequent to becoming regulated, i.e., the presence of regulation may induce a bank to decrease the quality … internal rating based approach. The paper considers how a bank's preference for a risk management system is affected by the … presence of supervision by bank regulators. The model uses a principal-agent setting between a bank's owner and its risk …

This paper discusses liquidity regulation when short-term funding enables credit growth but generates negative systemic …

stylized facts about pre-crisis bank behavior, and suggest implications for the optimal design of capital regulation. …The paper studies risk mitigation associated with capital regulation, in a context when banks may choose tail risk …. A bank with higher capital has lesschance of breaching the ratio, so may actually take more risk. As a result, banks …