The recent fnancial crisis highlighted the role of Bank Holding Companies (BHCs) in exacerbating the crisis and in … monetary policy and market innovations on bank behavior in the presence of Basel III type regulations. To our knowledge, this … trading business, and show that regulations that target bank governance can mitigate possible rogue trading and the …

This paper examines the role of bank capital in decision-making by bank holding companies (BHCs) in the United States …. Following Chami and Cosimano's (2001) call option approach to bank capital, BHCs optimally choose the amount of capital to … insure the bank against becoming capital constrained in the future. We provide empirical support for this model, and find …

includes three elements: (a) a module to simulate the impact of bank run scenarios; (b) a module to assess risks arising from …

bank may choose insufficient liquidity buffers and transparency. The regulatory response is constained: while liquidity … increase bank incentives to adopt transparency …

conditions, and the regulatory environment. We use this model to simulate bank credit losses for stress-testing purposes and to … that can be made to capture country-specific institutional features. The model uses bank portfolio data broken down by risk …