Banks are growing ever larger compared to their national economies. We show that increases in relative bank size … (measured as a bank's liabilities divided by national GDP) are linked to banks displaying higher tail risk. This effect is not … entirely due to risk channels that disproportionately expose relatively large banks to systematic tail risks, sovereign risks …

gaps of banks in resolution in the euro area. It estimates possible ranges of liquidity gaps for significant banks under …

seeks to control the amount of tail risk that large banks take in their trading books. However, banks around the world … whether the Basel framework allows banks to take substantive tail risk in their trading books without a capital requirement … allows banks to do so. Hence, our paper supports the view that the Basel framework leaves room for considerable improvements …

The paper studies risk mitigation associated with capital regulation, in a context when banks may choose tail risk … liability. When capital raising is costly, poorly capitalized banks may limit risk to avoid breaching the minimal capital ratio …. A bank with higher capital has lesschance of breaching the ratio, so may actually take more risk. As a result, banks …