We estimate a structural model of bank portfolio lending and find that the typical U.S. community bank reduced its … effects (consistent with a reduction in the liquidity of assets held on bank balance sheets) and by reduced loan supply …

externalities, while pay-risk incentives increase both externalities. Our findings infer a tradeoff for bank regulators …

opportunities for commercial banks. Our results suggest that compensation committees provided new incentives for bank CEOs to … strategic reallocations, our results also suggest that bank boards designed CEO compensation contracts to limit excessive risk …

The Basel III Accord imposes minimum liquidity standards on bank balance sheets that are already constrained by minimum … that resulted in greater balance sheet liquidity. Thus, in the state of nature that has traditionally most concerned bank … regulators (i.e., stress to bank equity capital), community banks increase their liquidity buffers. Given that these lenders do …

loosening of Federal Reserve regulations in 2008. Bank shareholders earned premiums upon the announcement of the PE investments … performance of non-bank PE investments. PE investors played an active role by increasing the risk incentives in bank CEO contracts …. Bank earnings growth accelerated and bank risk profiles increased, consistent with historical regulatory concerns that …

We model the failed bank resolution process as a repeated game between a utility-maximizing government resolution … an incentive for bank complexity. We solve the game in mixed strategies and find equilibrium conditions remarkably … descriptive of government responses to actual and potential large bank insolvencies during the recent financial crisis. The …

We study recent changes in the geographic distances between small businesses and their bank lenders, using a large …