We find evidence of a bank lending channel for the euro area operating via bank risk. Financial innovation and the new … ways to transfer credit risk have tended to diminish the informational content of standard bank balance-sheet indicators …. We show that bank risk conditions, as perceived by financial market investors, need to be considered, together with the …

, the paper bridges the gulf between (1) the banking literature that studies moral hazard effects of bank regulation without … the microeconomics of bank production without explicitly considering how banks' production decisions influence their … bank managers cost minimization versus value maximization are estimated using U.S. data on highest-level bank holding …

incentives for banks to take additional risk, potentially threatening the safety of banking and payments system. Commercial bank … regulators have responded to this increased potential for risk-taking by formally linking bank supervision and regulation to the … level of risks that banks take. In this study we analyze the safety and soundness (CAMEL) ratings assigned by bank …