We address two questions: (i) Are bank capital structure and value correlated in the cross section, and if so, how? (ii …) If bank capital does affect bank value, how are the components of bank value affected by capital? We first develop a … dynamic model with a dissipative cost of bank capital that is traded off against the benefits of capital: strengthened …

incentives for banks. But innovation brings with it the risk that investors could disagree with the bank that the loan is worthy …

This paper provides an explanation for the urge of banks to merge and expand scope. We build a model where bank … sufficiently profitable to give the bank the necessary quot;deep pocketsquot; to absorb these losses. The latter suggests that …