We provide a theoretical foundation for the claim that prolonged periods of easy monetary conditions increase bank risk … taking. The net effect of a monetary policy change on bank monitoring (an inverse measure of risk taking) depends on the … structures, a monetary easing leads to greater leverage and lower monitoring. However, if a bank's capital structure is fixed …

growth, suggesting that Asian banks are also subject to indirect market discipline mechanisms through bank market structure …. This study therefore sheds light on the importance of enhancing bank competition to overcome bank risk and strengthen … financial intermediation. This study also advocates greater reliance on market discipline to promote bank stability …

insurance coverage in 2013 and the role of financial intermediaries in the funding market changed this discipline. The database … size of banks and their capitalization being the main disciplining factors. Deposit insurance has reduced market discipline …. The results did not indicate the existence of market discipline through the quantity mechanism and deposit insurance did …