, in the context of the eurozone periphery, the increase in domestic government bond holdings, the reduction of bank credit …

In this paper, we develop a contingent claim model to evaluate a bank’s equity and liabilities that integrates the … regulation. The barrier options theory of corporate security valuation is applied to the contingent claims of a bank. The barrier … products (WMPs) and entrusted loans (ELs). The optimal bank interest margin, i.e., the spread between the loan rate and the …

Bank regulators interfere with the efficient allocation of resources for the sake of financial stability. Based on this …

requirements. We find that an increase in the bankspecific regulatory capital requirement results in a higher bank capital ratio … and higher bank leverage. We do not observe differences between confidential and public disclosure of capital requirements …. Our results empirically illustrate a tradeoff between bank resilience and a fostering of the economy through more bank …

this study, we argue that bank efficiency generates incentives that can impact banks’ capital holdings and the cost of … positive impact on bank capital during the global financial crisis of 2007–2009. We also observe that on average, banks … intermediation costs. Our results imply the beneficial impact of bank efficiency for bank stability and real economy. …

This paper addresses the trade-off between additional loss-absorbing capacity and potentially higher bank risk …