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 …

quantify the loss of international diversification benefits for major advanced economies, which have a significant presence in … imply a potentially significant loss of international diversification benefits of financial openness for the considered …

-TAKING INSTITUTIONS -- IV. CREDIT RISK AND BANK LENDING DECISIONS -- V. CONCLUSIONS AND ISSUES GOING FORWARD: CREATING THE INCENTIVES AND …

earnings at wholesale banks in Japan with a reduction in the franchise value of wholesale banking. In contrast with the …, the decline in corporate demand for bank liquidity is identified as a major factor explaining the fall of the franchise …

This paper presents a simple heuristic measure of tail risk, which is applied to individual bank stress tests and to …

indices; second, which bank-specific characteristics explain these risk exposures; third, are there clusters of banks with … analysis of bank-to-bank linkages suggests that any 'globalization' of the euro area crisis is likely to be channelled through …