Kanas, Angelos - In: Review of Quantitative Finance and Accounting 43 (2014) 2, pp. 393-404
As the Basel III reforms, which come into effect from 2012, place emphasis on default risk, assessing the impact of Prompt Corrective Action (PCA) on default risk is of practical relevance. We provide strong evidence that both the dynamic and the contemporaneous impact of the PCA-defined tier 1...