highlight an opposite effect: higher profitability loosens bank borrowing constraints. This enables profitable banks to take … risk on a larger scale, inducing risk-taking. This effect is more pronounced when bank leverage constraints are looser, or …

individual asset holding data of German banks. I find that those banks operating with tight regulatory constraints pick the … selection allows banks to increase the return on the capital required for an ABS investment by a factor of four. …

individual asset holding data of German banks. I find that those banks operating with tight regulatory constraints pick the … selection allows banks to increase the return on the capital required for an ABS investment by a factor of four. …

yield. Studying securitization exposures on the balance sheets of German banks, I show evidence consistent with this … prediction. Banks with tight regulatory constraints (low capital adequacy ratios) invest more in higher yielding ABSs … conditionally on rating-implied regulatory risk weights. ABS investments of constrained banks tend to perform worse ex post in terms …

We study the effects of a bank’s engagement in trading. Traditional banking is relationship-based: not scalable, long … leads trading in banks to become increasingly risky, so that problems in managing and regulating trading in banks will …

that the United States has essentially formalized a commitment to a “too big to fail” (TBTF) policy for major banks. This … paper uses data from the FDIC on the relative cost of funds for TBTF banks and other banks, before and after the crisis, to …

In this paper, we analyze the impact of banks' non-interest income share on risk in the German banking sector for the … on risk significantly differs depending on banks' overall business model. More specifically, we show banks with retail …-oriented business model such as savings banks, cooperative banks and other retail-oriented banks become significantly more stable if …

as securitization that allow them to increase their leverage. Our results further indicate that banks become more risky … the literature, we include a large number of unlisted banks in our sample which represent the majority of banks in the EU …. We show that banks with high rates of loan growth are more risky. Moreover, we find that banks will become more stable if …

mortgage tax from being levied on borrowers to being levied on banks; (ii) some areas, for historical reasons, were exempt from … smaller number of lending relationships, not working for the lender, or facing less banks in their zip-code, thereby …-full tax pass-through, the tax shift increases banks’ risk-taking. More affected banks reduce costly mortgage insurance in case …