different levels of bank risk (measured by the distance to default), considering the possible specificities across business … raises the suspicion of regulatory arbitrage to a different extent across bank business models. Third, we explore whether …, and to what extent, the degree of regulatory arbitrage varies across bank business models. Our findings show that one of …

measures in a regulated banking environment. Based on an estimated DSGE model, we explore the interactions between central bank … asset purchases and bank capital-based financial policies (regulatory, supervisory or macroprudential) through its influence … on bank risk-shifting motives. We find that weakly-capitalised banks display excessive risk-taking which reinforces the …

explain about two-thirds of the variation of bank capitalization over the business cycle. We estimate that provisioning …