be detrimental to bank stability, the more so where bank interest rates are deregulated and the institutional environment … is weak. Also, the adverse impact of deposit insurance on bank stability tends to be stronger when the coverage offered …

that arises in case of resolution or bankruptcy. This net benefit, which may be capitalized into the value of the bank … distress despite increasing encumbrance of the bank's balance sheet. The benefit is maximized when resolution is initiated …

We study the effects of a bank's engagement in trading. Traditional banking is relationship-based: not scalable, long …-based: scalable, shortterm, capital constrained, and with the ability to generate risk from concentrated positions. When a bank … inefficiencies. A bank may allocate too much capital to trading ex-post, compromising the incentives to build relationships ex …

Despite revisions to bank capital standards, fundamental shortcomings remain: the rules for setting capital … system of capital regulation that addresses these needs by making changes to all three pillars of bank regulation: only …

to take on risk by reducing market discipline or by increasing charter value. We use an international sample of bank data …

We revisit the link between bailouts and bank risk taking. The expectation of government support to failing banks … creates moral hazard - increases bank risk taking. However, when a bank's success depends on both its effort and the overall … invest prudently and so reduce bank risk taking. This systemic insurance effect will be relatively more important when …