This paper investigates the incentives for banks to bias their internally generated risk estimates. We are able to … by low-capital banks to improve regulatory ratios. At the portfolio level, the difference in borrower probability of … credits. In addition, we find that low-capital banks' risk estimates have less explanatory power than those of high …

We examine liquidity creation per unit of assets by banks subject to the Liquidity Coverage Ratio (LCR) using the … asset pair with different LCR weights, and the differential implementation of LCR by the very large and less-large LCR banks …. We find that, since 2013, there has been reduced liquidity creation by LCR banks compared to non-LCR banks, occurring …

We estimate the cost of capital for the banking industry and find that while the cost of capital soared for banks in … the financial crisis, after the passage of the Dodd-Frank Act, the value-weighted cost of capital for banks fell … differentially more than did the cost of capital for nonbanks. The very largest banks drive the decline in expected returns. Over a …

Historically, nonfinancial corporations relied on performance targets linked to their EPS. Up until the 1970s, banks … explaining banks' market values. In this paper we present a model of a bank with fixed-rate deposit insurance that faces …

shifting reserves from banks with high balance sheet costs to banks with low balance sheet costs. SBAs would not require …

to monetary policy differs across small banks that are affiliated with the same bank holding company but operate in … different geographical areas. These banks face similar constraints in accessing internal and external sources of funds, but have …

Do banks play a special role in the transmission mechanism of monetary policy? I use the presence of internal capital … banks. In particular, I demonstrate that affiliated bank loan growth is less sensitive to changes in the federal funds rate … than that of unaffiliated banks, and that these relatively unconstrained banks are better able to smooth insured deposit …

procedure to rank banks in the Canadian Large Value Transfer System (LVTS). In doing so, we obtain estimates of the payment … processing speeds for the individual banks. These differences in processing speeds are essential for explaining why observed … by banks. …