regulation. The barrier options theory of corporate security valuation is applied to the contingent claims of a bank. The barrier …, which better fits the narrative evidence on bank spread behavior under capital regulation in particular during a financial … superior return performance by a surge in shadow banking activities that makes the bank less prudent and more prone to risk …

In this paper, we develop a contingent claim model to examine the optimal bank interest margin, i.e., the spread … between the domestic loan rate and the deposit market rate of an international bank in distress. The framework is used to … evaluate the cross-border lending efficiency for a bank that participates in a government capital injection program, a …

new Basel III Accord to counter excessive bank risk-taking behavior. However, prior theoretical as well as empirical … literature that studies the impact of risk-based capital requirements on bank risk-taking behavior is inconclusive. The primary … purpose of this paper is to examine the impact of risk-based capital requirements on bank risk-taking behavior, using a panel …