, borrowerlender relationships and Gertler-Karadi monetary policy shocks. Higher policy rates shift credit supply from banks to …We show that nonbanks (funds, shadow banks, fintech) affect the transmission of monetary policy to output, prices and … the distribution of risk via credit supply. For identification, we exploit exhaustive US loan-level data since the 1990s …

analyzes the implications of the euro for cross-border banking activities. A portfolio model is used which captures the role of … banks as providers of informational and of risk-diversification services. By eliminating exchange rate risks, the euro … enhances the incentives of banks to expand within Euroland. Yet, while the currency bias in bank portfolios will be eliminated …

, nondiversified banks. In particular, I test whether greater geographic diversification of banks has effects on the risk taking ….S. commercial banking sector indicate that a bank's risk taking is lower when its competitors have a more diversified branch network …. These findings indicate that a bank's diversification also impacts the risk taking of competitors, even if these banks are …

The recent financial crisis has forced a rethink of banking regulation and supervision and the role of financial … innovation. This paper develops a model where prudent banks may signal their type through high capital ratios. Capital regulation …

and become toxic. We study the effects of the LRR on lending strategies and its implications for banks' stability. We show … that the LRR might induce banks with low-risk lending strategies to diversify their portfolios into high-risk loans until …, the aggregate capital costs of banks do not increase. However, because the diversification makes banks' portfolios more …

include the use of risk-weight floors and leverage ratios. I show that banks for which those are binding reduce their credit … in the banking sector. Instead, the strategic use of risk models can be avoided by imposing penalties on banks with low …The regulatory use of banks' internal models aims at making capital requirements more accurate and reducing regulatory …

We provide evidence on how banks form network connections and endogenous risk-taking in their non-bank counterparty … reports that provide counterparty-level data across a wide range of OTC markets for the most systemically important U.S. banks …. We show that banks are more likely to either establish or maintain a relationship, and increase their exposures within an …

The regulatory use of banks' internal models makes capital requirements more risk-sensitive but invites regulatory …