. First, it highlights the key role that sovereign debt exposures of banks have played in the feedback loop between bank and … fiscal distress, and inquires how the regulation of banks' sovereign exposures in the euro area should be changed to mitigate … European banks and the tendency of EU regulators to rescue rather than resolving distressed banks, and asks to what extent the …

European supervisors aggressively requested more capital at large banks. That may cut credit to the economy. We confirm … that especially larger banks cut loans while less-significant banks partly offset that credit drop. Moreover, we identify … nasty spillovers from that interaction. Specifically, larger banks' deleveraging was associated with significant portfolio …

banks from 26 countries over the period 2005-2015, we examine the nature of the relationship between bank risk, bank … potential discrepancies in risk-taking behavior. We subdivide our sample into two sub-samples (East Europe and West Europe …

Credit risk is a critical issue that affects banks and companies on a global scale. Possessing the ability to …

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 …

evidence on Swiss banks to assess both benefits and costs. The analysis yields two main conclusions. The long-run economic …