distorted the choices of financial intermediaries ex-ante (inducing them to rely too much and too quickly on liquidity for …

First externalities risk due to the size of the companies or the principle that large companies are also at risk of … for savers and investors are taken. If we accept-so conservatively that the risk exposure of a company is limited by its … risk foreseeable losses with positive externalities, then, what can happen with negative derivatives risk capital …

This study investigates the associations among bank risk-taking, ownership concentration, and the recently proposed … standard for capital stability (Basel III). Consistent with theory, the evidence shows that a rise in ownership concentration … by one standard deviation increases the extent of risk-taking by as much as 6–8%. Although Basel III does not start …

events. An intermediary in the framework faces two types of risk: the value of its assets may decline and/or its short …-sheet characteristics, such as its leverage, the maturity structure of its debt, and the liquidity and riskiness of its asset portfolio …. They also show how the framework can be applied to examine current policy issues, including liquidity requirements …

perspectives, elaborating factors such as liquidity and macroeconomic conditions. First, we attempt to reorganize the variety of … lay out an early warning system (EWS) to predict a financial crisis where the role of capital and liquidity are explicitly … captured. In the EWS, the estimation results confirm two-fold evidence: (i) capital and liquidity are imperfect substitutes for …