This paper analyses the role of banks in financing SMEs in Britain and Germany. It applies a sociological … institutionalist approach to understand how banks construct and manage risk, relating to SME business. The empirical analysis is based … on the results of a comparative survey of a sample of British and German banks and also refers to statistical material …

-specific vulnerabilities contributing to the subsequent declines in banks' stock returns. We find that uninsured deposits, unrealized losses in … of liquid securities did not help mitigate the negative spillovers. Interestingly, banks whose stocks performed worse … rate hikes nor risks linked to bank size. While mid-sized banks experienced particular stress immediately after the SVB …

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 …

system. We substantiate this argument with three didactic findings: (1) commercial banks in general were prone to engage in … channeling risky entrusted loans; (2) shadow banking through entrusted lending masked small banks' exposure to balance …-sheet risks; and (3) two well-intended regulations and institutional asymmetry between large and small banks combined to give …