We study the implications of the value at risk concept for the bank's optimum amount of equity capital under credit … managerial and market factors. Furthermore, the bank's equity and asset/liability management has to be addressed simultaneously … by bank managers. …

The paper revisits the impact of uncertainty on the decision problem of a bank. The bank extends risky loans to private … is endogenized through an information system that conveys public signals about the return distribution of bank loans … raises expected bank profits, but may lead to a higher or lower expected loan volume. Moreover, higher transparency may …

We study the implications of the value at risk concept for the bank's optimum amount of equity capital under credit … managerial and market factors. Furthermore, the bank's equity and asset/liability management has to be addressed simultaneously … by bank managers. …

In this paper we study the impact of more transparency in the interbank market on the volume of bank intermediated … decrease the volume of bank loans. In particular, the impact of more transparency on the volume of loans depends on the … curvature of the marginal cost function of the banking firm. Furthermore, we find that ex ante expected profits of the bank are …