assistance on bank risk taking. Bailed-out banks initiate riskier loans and shift assets toward riskier securities after … receiving government support. However, this shift in risk occurs mostly within the same asset class and, therefore, remains … appear safer according to regulatory ratios, but show an increase in volatility and default risk. These findings are robust …

We investigate the impact of changes in capital of European banks on their risk-taking behavior from 1992 to 2006, a … capital banks hold. First, we assume that risk changes depend on banks' ex ante regulatory capital position. Second, we … consider the impact of an increase in each component of regulatory capital on banks? risk changes. We find that, for highly …

for outside investors. Consistent with such recourse, we find that conduits provided little risk transfer during the run …