resilience. Yet in today's environment of excessive liquidity due to very low interest rates and quantitative easing, bank …

This paper analyzes the influence of market discipline on the risk-taking incentives of banks. It is shown that market … discipline reduces risk if banks can credibly commit to a given level of risk before the interest rate on deposits is set. If … in risk. The reason is that rational depositors anticipate the banks' behavior and therefore ask for a higher risk …

, primarily by community banks. The survey evidence suggests that the use of credit scores in small business lending by community … banks is surprisingly widespread. Moreover, the scores employed tend to be the consumer credit scores of the small business …

acquiring banks value profitable, high-growth, and low-risk targets. We also find that the strength of bank regulation and … regimes and stronger deposit insurance schemes lower the takeover premiums paid by acquiring banks. This result, presumably in …

of both acquirers and targets. We find that capitalization, profitability, and liquidity show signs of statistically and … home country prudential supervisors and deposit insurance funding systems were stricter than the target's. For target banks … insurance funding regimes tend to result in positive postmerger changes in liquidity and performance. …

To protect retail investors from the bail-in rule, we propose that banks should issue subordinated "contractual bail … estimates of the amounts of contractual bail-in instruments that European banks should issue in order to reach the 8% target …

To address banks' risk taking during the recent financial crisis, we develop a model of credit-portfolio optimization … and study the impact of risk-based capital regulation (Basel Accords) on banks' asset allocations. The model shows that … requirements – for banks for which these requirements are (will become) binding – will be to skew the risky portfolio towards high …

We show that nonbanks (funds, shadow banks, fintech) affect the transmission of monetary policy to output, prices and …, borrowerlender relationships and Gertler-Karadi monetary policy shocks. Higher policy rates shift credit supply from banks to …