assistance on bank risk taking. Bailed-out banks initiate riskier loans and shift assets toward riskier securities after … receiving government support. However, this shift in risk occurs mostly within the same asset class and, therefore, remains … appear safer according to regulatory ratios, but show an increase in volatility and default risk. These findings are robust …

find support for risk-shifting and regulatory arbitrage motives at banks in that carry trade behavior is stronger for large … banks and banks with low capital ratios and high risk-weighted assets. We also find evidence for home bias and moral suasion …

This paper examines how political connections affect risk exposure of financial institutions. Using a geography …

that had no connection to housing. We find that changes in the LIB-OIS spread, a proxy for counterparty risk, were strongly …

billion in the absence of cash-out refinancing. The refinancing ratchet effect is a new type of systemic risk in the financial …