banks) in the U.S. corporate loan market. For identification, we exploit a supervisory credit register of syndicated loans … Basel III. We find that less-capitalized banks reduce loan retention, particularly among loans with higher capital …

reasons (over-optimistic banks neglecting risks) and to agency problems between bank shareholders with debt-holders and … taxpayers (banks understand high risk-taking). We test whether US banks’ stock returns in the 2007-08 crisis are related to bank … that top-five executives’ sales of shares predict the cross-section of banks returns during the crisis; interestingly …

whether banks are sufficiently resilient to stress effects, which can arise if the economy suffers an unexpected downturn, for … example. This might coincide with system-wide deleveraging if banks are insufficiently resilient. Systemwide deleveraging, in … take multiple first-round scenarios into account. The sequence comprises (i) the loss-absorbing capacity of banks in the …

whether banks are sufficiently resilient to stress effects, which can arise if the economy suffers an unexpected downturn, for … example. This might coincide with system-wide deleveraging if banks are insufficiently resilient. Systemwide deleveraging, in … take multiple first-round scenarios into account. The sequence comprises (i) the loss-absorbing capacity of banks in the …

funding side. When such runs occur, shadow banks liquidate their assets in a secondary market. Entry into shadow banking is … profitable when traditional banks provide sufficient secondary market demand to prevent these liquidations from causing a fire … collapse then triggers a fire-sale that renders traditional banks vulnerable to "liquidity runs". The prospect of liquidity …

To address banks' risk taking during the recent financial crisis, we develop a model of credit-portfolio optimization … and study the impact of risk-based capital regulation (Basel Accords) on banks' asset allocations. The model shows that … requirements – for banks for which these requirements are (will become) binding – will be to skew the risky portfolio towards high …