deposits towards non-deposit liabilities. We find that unobserved timeinvariant bank fixed effects are ultimately the most … important determinant of banks' capital structures and that banks' leverage converges to bank specific, time invariant targets …. -- Bank capital ; capital regulation ; capital structure ; leverage …

We contribute to the empirical literature on the impact of shocks to bank capital in the euro area by estimating a … economy, namely a demand shock and a shock to bank capital. The main findings of the paper are as follows: i) Impulse …-response analysis shows that in response to a shock to bank capital, banks boost capital ratios by reducing their relative exposure to …

This paper addresses the trade-off between additional loss-absorbing capacity and potentially higher bank risk …

investment in a model in which firms borrow from both bank and non-bank lenders. The bank funds loans with insured deposits and … competitively price loans. A tight capital requirement on the bank reduces risk-shifting and decreases bank leverage, reducing the … risk of costly bank failure. In response, though, the bank can change both price and non-price contract terms. This may …