regulatory requirements. Our analytic characterization of the bank policy choices shows that imposing solely liquidity … requirements leads to lower bank losses in default at the cost of an increased likelihood of default. Combining liquidity … requirements with leverage requirements reduces drastically both the likelihood of default and the magnitude of bank losses in …

a bank holding insured deposits and issuing non-bail-inable debt and bail-inable Tier1-capital debt? We address this …

This paper presents a continuous-time bank capital structure model in which the bank's assets are subject to both … diffusion and tail risk. The latter causes uninsured deposits to be risky, as the bank's assets can jump below the threshold at … the credit spread on deposits when the bank is unregulated and of the endogenous deposit insurance premium when the bank …

. In this paper, we establish that liquidity and capital ratios had a positive impact on bank returns during the first … identify deposit franchise and risk management as two key channels through which stronger financial stability improved bank …

In this study, we test the predictive power of several alternative measures of bank capital adequacy in identifying U ….S. bank failures during the recent crisis period. We find that an unconventional ratio — the non-performing asset coverage … ratios in at least five aspects: (i) it aligns capital and credit risks — the two primary risks of bank failures — in one …

Mercosur? The objective of this paper is to answer this question by analyzing changes in bank behavior after crises in the … literature - to post-crisis bank behavior. Using a panel dataset of commercial banks during the period 1990-2006, we analyze the … impact of crises on four sets of financial indicators of bank behavior - profitability, maturity preference, credit supply …