We develop a dynamic model of banking to assess the effects of liquidity and leverage requirements on banks' insolvency … risk. In this model, banks face taxation, flotation costs of securities, and default costs and maximize shareholder value … regulatory requirements. Our analytic characterization of the bank policy choices shows that imposing solely liquidity …

banks' liabilities thereby decreasing the cost of equity relative to the cost of debt. Using a difference …-in-differences approach we assess the impact of this tax levy on banks' participation in the syndicated loan market. We further investigate … the impact of the tax levy along bank size and capital structure. We find that banks located in countries where the tax …

, not defined in a market, but by the collateral frameworks and interest rate policies of central banks. Using the … on financial markets and the wider economy. They can, for example, bias the private provision of real liquidity and …

This paper provides evidence on how the new international regulation on Global Systemically Important Banks (G …-SIBs) impacts the market value of large banks. We analyze the stock price reactions for the 300 largest banks from 52 countries … value of the newly regulated banks, yet that the official designation of banks as “globally systemically important” itself …

In this paper, we examine the relationship between banks lobbying activities, their size, financial strength, and … sources of income. First, we find that banks are more likely to lobby when they are larger, have more vulnerable balance … sheets, are less creditworthy, and have more diversified business profiles. We also find that banks engaged in non …

Evidence suggests that banks tend to lend a lot during booms, and very little during recessions. We propose a simple … that are characteristic of modern banks' activities. The first ingredient is moral hazard: banks are supposed to monitor … multiple of the banks' own capital. The second ingredient is the banks' high exposure to aggregate shocks: banks' assets have …

Making use of a structural model that allows for optimal liquidity management, we study the role that repos play in a … depositor preference rule. We also analyze the impact of a liquidity coverage ratio, payout restrictions and a leverage ratio on …

yield. Studying securitization exposures on the balance sheets of German banks, I show evidence consistent with this … prediction. Banks with tight regulatory constraints (low capital adequacy ratios) invest more in higher yielding ABSs … conditionally on rating-implied regulatory risk weights. ABS investments of constrained banks tend to perform worse ex post in terms …

We develop a methodology to measure the capital shortfall of commercial banks in a market downturn, which we call … that reflect the banks' market-sensitive assets. We measure SEL as the difference between the mark-to-market value of the … assets in the downturn and the book value of the liabilities. Based on large U.S. commercial banks, we empirically …