Hypothesis, under which stress-tested banks reduce credit supply – particularly to relatively risky borrowers – to decrease their … credit risk. The findings do not support the Moral Hazard Hypothesis, in which these banks expand credit supply … banks, banks that passed the stress tests, and the earlier stress tests …

questions regarding the effectiveness of these tools. We empirically investigate relations between EAs and banks' contributions … findings is greater during financial crises than normal times, and that EAs against banks are more effective in systemic risk …

, while governments in masculine countries allow banks to operate with less liquidity and less often bail out troubled …

Theory suggests that government aid to banks may either reduce or increase systemic risk. We are the first to address … reduced contributions to systemic risk, particularly for larger and safer banks, and those in better local economies. This …. Results are robust to endogeneity and selection bias checks. Findings yield policy conclusions about whether to aid banks, the …

Governments provide guarantees to banks, such as deposit insurance, often increasing them during financial crises …-causality identification challenges by examining effects of home country guarantees on liquidity creation by subsidiary banks in foreign host …