Lecture on the first SFB/TR 15 meeting, Gummersbach, July, 18 - 20, 2004The explicit or implicit protection of banks … unambiguously leads to higher risk-taking at those banks that do not enjoy a bail-out guarantee. The reason is that the prospect of …

The explicit or implicit protection of banks through government bail-out policies is a universal phenomenon. We analyze … main result is that the bail-out policy unambiguously leads to higher risk-taking at those banks that do not enjoy a bail … in the deposit market and depressing other banks? margins. In contrast, the effects on the protected bank?s risk …

. Using a model with imperfect competition and moral hazard, we find that small banks (and hence small borrowers) may profit … from the introduction of an internal ratings based (IRB) approach if this approach is applied uniformly across banks …. However, the banks' right to choose between the standardized and the IRB approaches unambiguously hurts small banks, and …

We present a banking model with imperfect competition in which borrowers' access to credit is improved when banks are … loans is public information. If the quality of loans is private information, banks have an incentive to grant unprofitable …

. Using a model with imperfect competition and moral hazard, we find that small banks (and hence small borrowers) may profit … from the introduction of an internal ratings based (IRB) approach if this approach is applied uniformly across banks …. However, the banks’ right to choose between the standardized and the IRB approaches unambiguously hurts small banks, and …

flat capital requirements if the approach is applied uniformly across banks and if the costs of implementation are not too … banks a competitive advantage and, due to fiercer competition, pushes smaller banks to take higher risks. This may even lead …

We present a banking model with imperfect competition in which borrowers’ access to credit is improved when banks are … loans is public information. If the quality of loans is private information, banks have an incentive to grant unprofitable …

The explicit or implicit protection of banks through government bail-out policies is a universal phenomenon. We analyze … main result is that the bail-out policy unambiguously leads to higher risk-taking at those banks that do not enjoy a bail … in the deposit market and depressing other banks’ margins. In contrast, the effects on the protected bank’s risk …

Lecture on the first SFB/TR 15 meeting, Gummersbach, July, 18 - 20, 2004: The explicit or implicit protection of banks … unambiguously leads to higher risk-taking at those banks that do not enjoy a bail-out guarantee. The reason is that the prospect of … other banks' margins. In contrast, the effects on the protected bank's risk taking and on welfare depend on the transparency …