This paper examines banks' disclosures and loss recognition in the financial crisis and identifies several core issues …, banks' disclosures about relevant risk exposures were relatively sparse. Such disclosures came later after major concerns … about banks' exposures had arisen in markets. Similarly, the recognition of loan losses was relatively slow and delayed …

When the Covid-19 crisis struck, banks using internal-rating based (IRB) models quickly recognized the increase in risk … and reduced lending more than banks using a standardized approach. This effect is not driven by borrowers' quality or by … banks in countries with credit booms before the pandemic. The higher risk sensitivity of IRB models does not always result …

transaction banks. Soft information can be interpreted as a private signal about the quality of a firm that is observable to a … relationship bank, but not to a transaction bank. We show that borrowers self-select to relationship banks depending on whether … private signal from firms by relationship banks and transaction banks asymmetrically. Relationship banks invest more …

This paper analyzes the evolving architecture for the prudential supervision of banks in the euro area. It is primarily …

government guarantees rather than from corporate governance failures within banks. The idea of the proposed regulation is to …

microfounded network model with endogenous network formation to analyze the impact of central banks' monetary policy interventions … on systemic risk. Banks choose their portfolio, including their borrowing and lending decisions on the interbank market …

(SVaR). Under the SVaR metric, the contribution of individual banks to systemic risk is well defined and can be approximated … bank's individual contribution to systemic risk diverges from the optimal macroprudential capitalization of the banks from …

This paper analyzes the new architecture for the prudential supervision of banks in the euro area. It is primarily …