This paper investigates the incentives for banks to bias their internally generated risk estimates. We are able to … by low-capital banks to improve regulatory ratios. At the portfolio level, the difference in borrower probability of … credits. In addition, we find that low-capital banks' risk estimates have less explanatory power than those of high …

Historically, nonfinancial corporations relied on performance targets linked to their EPS. Up until the 1970s, banks … explaining banks' market values. In this paper we present a model of a bank with fixed-rate deposit insurance that faces …

This paper investigates the incentives for banks to bias their internally generated risk estimates. We are able to … by low-capital banks to improve regulatory ratios. At the portfolio level, the difference in borrower probability of … credits. In addition, we find that low-capital banks' risk estimates have less explanatory power than those of high …

Historically, nonfinancial corporations relied on performance targets linked to their EPS. Up until the 1970s, banks … explaining banks' market values. In this paper we present a model of a bank with fixed-rate deposit insurance that faces …

banks' decision to convert their subsidiaries into branches by relocating their deposits into the latter. We find a similar … responses are concentrated on household deposits. Given that foreign banks' branches offer the insurance protection of these … banks' home countries, rather than that granted by their host country arrangement, our findings confirm that the credibility …

We consider a model in which banks vulnerable to liquidity crises may receive support from the lender of last resort … (LLR). Higher liquidity standards, though costly to banks, give the LLR more time to find out the systemic implications of … denying support to the banks in trouble. By modifying banks' prospects of being supported in a crisis, liquidity standards …

lending. We find that the guidance primarily impacted large, closely supervised banks, but only after supervisors issued … more lax lending policies than banks, we unveil important evidence that nonbanks increased bank borrowing following the … issuance of guidance, possibly to finance their growing leveraged lending. The guidance was effective at reducing banks …

lending. We find that the guidance primarily impacted large, closely supervised banks, but only after supervisors issued … more lax lending policies than banks, we unveil important evidence that nonbanks increased bank borrowing following the … issuance of guidance, possibly to finance their growing leveraged lending. The guidance was effective at reducing banks …

We argue that the defining feature of large and complex banks that makes their failures messy is their reliance on …

higher expected drawdown rates pay higher commitment fees, and lead banks often increasetheir credit line investments in …