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 …

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 …

Do credit ratings help enforce market discipline on banks? Analyzing a uniquely comprehensive dataset consisting of 1 … rating downgrades for internal reasons, such as adverse changes in the operating performance or capital structure of banks …, are associated with a significant CDS spread widening. However, this widening only occurs for banks that are not perceived …

We study bailouts of banks that suffer from debt overhang problems and have private information about the quality of …