Traditional theory suggests that high franchise value limits bank risk-taking incentives. Then why did many banks with … funding (such as repos), and when it can achieve high leverage thanks to better institutional environment (with more …

of leverage which gives rise to systemic risk. We suggest the aggregated leverage ratio named “Global Aggregated Leverage … Ratio” (GALR), which encompasses the activity of commercial and investment banks. We test this indicator through logit …

future crises. The crisis is was the product of a ‘perfect storm’ bringing together a number of microeconomic and … agencies’ business model, the procyclical behaviour of leverage in much of the financial system and of the Basel capital … global liquidity creation by key central banks and, second, an ex-ante global saving glut, brought about by the entry of a …

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 …

We model the expected support of banks with credit ratings from Moody's and Fitch, taking explicitly into account the ….e., that the expected support may induce banks to assume bigger risks). Our results suggest that moral hazard concerns are …'s institutions. These findings have important implications for the dynamics of banking crises, the value of the ‘fair’ insurance …

Commercial banks increasingly use short-term wholesale funds to supplement traditional retail deposits. Existing … literature mainly points to the "bright side" of wholesale funding: sophisticated financiers can monitor banks, disciplining bad …

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 …