Hovakimian, Armen; Kane, Edward J. - In: Journal of Finance 55 (2000) 1, pp. 451-468
Unless priced and administered appropriately, a governmental safety net enhances risk-shifting opportunities for banks. This paper quantifies regulatory efforts to use capital requirements to control risk-shifting by U.S. banks during 1985 to 1994 and investigates how much risk-based capital...