credit growth experienced by these countries. We find that, on average, both bank capitalization and lending activities in …

This paper analyzes the evolution of bank funding structures in the run up to the global financial crisis and studies … the implications for financial stability, exploiting a bank-level dataset that covers about 11,000 banks in the U.S. and …-crisis period were more likely to fail afterward. The likelihood of bank failure also increases with bank risk-taking. In the cross …

pre-crisis bank behavior, and suggest implications for the optimal design of capital regulation. …

This paper considers the implementation challenges facing the Basel Committee’s new proposals on bank capital standards …

banks can extract market power rents. We show that more bank competition results in lower economy-wide risk, lower bank … allocation and optimal levels of bank risk and capitalization. These results are at variance with those obtained by a large …

can predict a negative relationship between concentration and bank loan-to-asset ratios, and a nonmonotonic relationship … between bank concentration and profitability. We explore these predictions empirically using a cross-sectional sample of about …, loan-to-asset ratios are negatively and significantly related to concentration, and bank profits are positively and …

Traditional bank competition policy seeks to balance efficiency with incentives to take risk. The main tools are rules … argue that bank competition policy should be reoriented to deal with the too-big-to-fail (TBTF) problem. It should also …

We revisit the link between bailouts and bank risk taking. The expectation of government support to failing banks … creates moral hazard—increases bank risk taking. However, when a bank’s success depends on both its effort and the overall … invest prudently and so reduce bank risk taking. This systemic insurance effect will be relatively more important when …