distorted the choices of financial intermediaries ex-ante (inducing them to rely too much and too quickly on liquidity for …

First externalities risk due to the size of the companies or the principle that large companies are also at risk of … for savers and investors are taken. If we accept-so conservatively that the risk exposure of a company is limited by its … risk foreseeable losses with positive externalities, then, what can happen with negative derivatives risk capital …

-based regulatory and risk-based supervisory approaches. The recent crisis has shown, on the one hand, that financial mitigations (i … reforms. In the European Union, the new European Systemic Risk Board (ESRB) and, above all, the three new European Supervisory …

This study investigates the associations among bank risk-taking, ownership concentration, and the recently proposed … standard for capital stability (Basel III). Consistent with theory, the evidence shows that a rise in ownership concentration … by one standard deviation increases the extent of risk-taking by as much as 6–8%. Although Basel III does not start …

This paper presents a flexible, lattice-based structural credit risk model that uses equity market information and a … detailed depiction of a financial institution’s liability structure to analyze default risk. The model is applied to examine … diagnostic tool for the early detection of financial distress and a prescriptive tool for addressing the sources of risk in large …