We analyse the poisonous interaction between bank rescues, financial fragility and sovereign debt discounts. In our … sovereign debt discount. We introduce long term government debt, which gives rise to the possibility of capital losses on bank … intermediaries causes bond prices to drop triggering capital losses at the bank under intervention. This mechanism shows the limits …

We analyze the poisonous interaction between bank rescues, financial fragility and sovereign debt discounts. In our … sovereign debt discount. We introduce long term government debt, which gives rise to the possibility of capital losses on bank … intermediaries causes bond prices to drop triggering capital losses at the bank under intervention. This mechanism shows the limits …

We analyze the impact of efficiency on bank risk. We also consider whether bank capital has an effect on this … supporting the bad management and efficiency version of the moral hazard hypotheses. In contrast, bank efficiency improvements … contribute to shore up bank capital levels. Our findings suggest that banks lagging behind in their efficiency levels might …

unweighted leverage requirements, their differential impact on bank lending, and equity buffer accumulation in excess of … regulatory minima. Tighter risk-weighted capital requirements reduce loan supply and lead to an endogenous fall in bank … profitability, reducing bank incentives to accumulate equity buffers and, therefore, increasing the incidence of bank failure …

During the last thirty years, U.S. bank concentration has been growing over time, as has bank capital ratio, which has … wealth, as well as a banking sector with imperfect competition. Consistent with the data, the model implies that bank … concentration leads to an increase in bank capital and a possibly non-binding capital constraint. Further, I use the model to …

Studies of the effect of macroprudential policy on bank risk tend to disregard the potential complementary role of bank … the relation of macroprudential policy and competition to bank risk jointly from a sample of 1373 banks from 13 East Asian … whereas macroprudential policies did commonly have a beneficial effect on risk at a bank level controlling for competition …