additional capital requirements in the form of G-SIB buffers. The effects are stronger for banks with higher incentives to reduce …

. Additionally, banks with a larger capital headroom provision significantly more, particularly for loans using IFRS 9. This suggests …

How do banks set their target capital ratio? How do they adjust to reach it? This paper answers these questions using … an original dataset of capital ratio targets directly announced to investors by European banks, materially improving data … capital requirements and a procyclical behavior consistent with market pressure. Second, banks do not distinguish between the …

How do near-zero interest rates affect optimal bank capital regulation and risk-taking? I study this question in a … deposit rates. When deposit rates are constrained by the zero lower bound (ZLB), tight capital requirements disproportionately … hurt franchise values and become less effective in curbing excessive risk-taking. As a result, optimal dynamic capital …

the bank. In this case, the shareholders lose part (or all) of the capital that they hold in the bank, the creditors lose … part or all of their debt, and the government receives a portion (or all) of the capital and all of the debt that is not … recovered by creditors. Hence, we assume that part of the capital can be lost due to financial distress or to cover bankruptcy …

guidelines on the Internal-Ratings Based (IRB) approach for capital adequacy calculation related to defaulted exposures remains …, in line with current regulations, that preserve the risk sensitivity of capital requirements. To do so, both parameters …

sovereign debt crisis. An unexpected increase in capital requirements for a subset of Portuguese banks in 2011 provides a … natural experiment to study the effects of reduced bank capital adequacy on productivity. Affected banks respond not only by …