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Risk Taking, Limited Liability and the Competition of Bank Regulators

Sinn, Hans-Werner - 2001

Limited liability and asymmetric information between an investment bank and its lenders provide an incentive for a bank …

Persistent link: https://www.econbiz.de/10012470046

Pillar 1 vs. Pillar 2 Under Risk Management

Pelizzon, Loriana - 2005

Under the New Basel Accord bank capital adequacy rules (Pillar 1) are substantially revised but the introduction of two …

Persistent link: https://www.econbiz.de/10012467010

Rollover Risk and Credit Risk

He, Zhiguo - 2010

This paper models a firm's rollover risk generated by conflict of interest between debt and equity holders. When the firm faces losses in rolling over its maturing debt, its equity holders are willing to absorb the losses only if the option value of keeping the firm alive justifies the cost of...

Persistent link: https://www.econbiz.de/10012462997

Basel II : A Contracting Perspective

Kane, Edward J. - 2006

Financial safety nets are incomplete social contracts that assign responsibility to various economic sectors for preventing, detecting, and paying for potentially crippling losses at financial institutions. This paper uses the theories of incomplete contracts and sequential bargaining to...

Persistent link: https://www.econbiz.de/10012465955

The Fundamental Determinants of Risk In Banking

Rosenberg, Barr - 1978

measures of the asset and liability characteristics of the bank; a second employs these characteristics and other data taken … from annual reports; a third model adds the history of the behavior of the price at the bank's common stock. The central … estimated in this way can serve a useful function in monitoring bank risk. Further, the predictive significance of each variable …

Persistent link: https://www.econbiz.de/10012478884

Transparency, Risk Management and International Financial Fragility

Draghi, Mario - 2003

Discussions of financial risk often fail to distinguish between risks that are consciously borne and those that are not. To understand the breeding conditions for financial crises the prime focus of concern should not be simply on large risk-taking per se, but on the unintended, or unanticipated...

Persistent link: https://www.econbiz.de/10012468892

Climate Stress Testing

Acharya, Viral V.; Berner, Richard B.; Engle, Robert F.; … - National Bureau of Economic Research - 2023

typical bank loan maturities; (ii) incorporate bank-lending responses to climate risks; (iii) assess the adequacy of climate …

Persistent link: https://www.econbiz.de/10014250115

Financial Dampening

Wieland, Johannes F. - 2016

monetary policy. The theory unifies an endogenous supply of illiquid local loans and risk-sharing among subsidiaries of bank …

Persistent link: https://www.econbiz.de/10012456534

Confronting Divergent Interests in Cross-Country Regulatory Arrangements

Kane, Edward J. - 2005

efficiently with cross-border issues. To track and control insolvency risk within and across any set of countries, officials must …

Persistent link: https://www.econbiz.de/10012466806

Do Strict Capital Requirements Raise the Cost of Capital? Banking Regulation and the Low Risk Anomaly

Baker, Malcolm - 2013

, including any effects on the cost of capital and in turn the rates available to borrowers. Standard theory predicts that, in …

Persistent link: https://www.econbiz.de/10012459645