information and reduce the agency costs of debt, as it has a positive relationship with the maturity of debt and a negative … relationship with the cost of debt. These results are consistent with the predominance of the monitoring effect in bank ownership … over the expropriation effect. The role of banks as shareholders and lenders also contributes to reduce agency cost of debt …

This paper shows that a reduction in tax discrimination between debt and equity funding leads to better capitalized … financial institutions. In many countries, the cost of debt is tax-deductible while the remuneration for equity (dividends) is … not deductible. Theoretically, this unequal treatment gives a bank - as any other firm - an incentive to take on more debt …

jurisdictions where the banking group operates. Then, we evaluate the effects that establishing tax neutrality between debt and … matters. In particular, a coordinated elimination of the tax advantage of debt would significantly reduce systemic losses in … national tax policies generate spillovers through cross-border bank activities and tax-driven strategic allocation of debt and …

Understanding the impact of the asymmetric tax treatment of debt and equity on the capital structures of financial … countries over nine years. On average, the sensitivity of banks? debt choices proves very similar to that of non-financial firms …

That most corporate tax systems favor debt over equity finance is now widely recognized as, potentially, amplifying …

The tax-benefit of interest deductibility encourages debt financing, but regulatory and market constraints create … suggest that any elimination of the tax-bias of debt may not bring the expected benefits for bank stability …

it reflects special liquidity benefits of bank debt. Even aside from neglecting the systemic damage to the economy that …

because it reflects special liquidity benefits of bank debt. Even aside from neglecting the systemic damage to the economy …