are regulated, including the need to obtain a charter to operate and explicit and implicit federal guarantees of bank … liabilities to reduce the probability of bank runs. These aspects of banking affect a bankś choice of risk vs. expected return …, which, in turn, affects bank performance. Banks have an incentive to reduce risk to protect the valuable charter from …

, 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 …

promoting bank safety and soundness. The Bank for International Settlements contends that market discipline imposes strong … potential losses from their risk exposures. Using 2007 and 2013 data on top-tier, publicly traded U.S. bank holding companies …

bank liabilities to reduce the probability of bank runs. These aspects of banking affect a bank's choice of risk versus … expected return, which, in turn, affects bank performance. Banks have an incentive to reduce risk to protect their valuable …-of-funds subsidy of mispriced deposit insurance. These are contrasting incentives tied to bank size. Measuring bank performance and its …

. S. bank holding companies, we obtain evidence on market discipline: we find that higher managerial ownership at most …