An important question in banking is how strict supervision affects bank lending and in turn local business activity. Supervisors forcing banks to recognize losses could choke off lending and amplify local economic woes. But stricter supervision could also change how banks assess and manage...

We use the EU stress tests and the Eurozone sovereign debt crisis to study the consequences of supervisory disclosure of banks' sovereign risk exposures. We test the idea that a mandatory one-time disclosure induces an increase in voluntary disclosures about sovereign risk in the following...

We investigate how provisioning models affect bank regulation. We study an accuracy vs. timeliness trade-off between an incurred loss model (IL) and a current expected credit loss model (CECL). Relative to IL, CECL improves efficiency by enabling timely intervention to curb inefficient ex post...

Appendix available here: "https://ssrn.com/abstract=3312275" https://ssrn.com/abstract=3312275.We examine economic consequences of US bank regulators' phased removal of the prudential filter for accumulated other comprehensive income for advanced approaches banks beginning on January 1, 2014....

EU politicians pressured the IASB to change the accounting rules for financial assets at the peak of the financial crisis in October 2008. The new rules enabled banks to forgo the recognition of unrealized fair value losses through reclassifications. This paper puts the ensuing regulatory relief...

We develop a model in which accounting information and prudential regulation interact to affect banks' incentives to originate loans. Prudential regulators impose capital requirements on banks but cannot commit to ex-ante efficient intervention. Instead, they respond to ex-post accounting...

We investigate the effect of expected provisioning requirements for loan losses on bank loan supply and stability. Although earlier loss recognition improves stability by strengthening the overall loss absorption capacity, it may amplify lending procyclicality. Under the expected provisioning...

I study the association between bank financial reporting opacity, measured by delayed expected loan loss recognition, and the intervention decisions made by bank regulators. Examining U.S. commercial banks during the 2007-2009 financial crisis, I find that delayed expected loan loss recognition...