optimal CR is tighter relative to the pre-crisis benchmark. Optimal CR is also bank specific, and tighter for large banks than … for small banks. This is for three reasons. First, allowing small banks to take more leverage enables them to potentially … grow faster, leading to a growth effect. Second, although more leverage by small banks results in a higher exit rate, these …

We study the relationship between banks' size and risk-taking in the context of supranational banking supervision …-big-to-fail effect, we find an inverse relationship between banks' size and non-performing loan growth for a sample of European banks …-up rather than incentives alignment among the supervisors and the banks. …

decreases over time. We study how regulatory tightenings inherent in this period, and addressing systemically important banks … (SIBs) in general and complexity more specifically, alter banks’ choices of complexity and risk. Banks reduce their … able to lower their idiosyncratic risk more than other banks. The overall complexity-risk nexus is lower after regulatory …

Banks are growing ever larger compared to their national economies. We show that increases in relative bank size … (measured as a bank's liabilities divided by national GDP) are linked to banks displaying higher tail risk. This effect is not … entirely due to risk channels that disproportionately expose relatively large banks to systematic tail risks, sovereign risks …

highlight an opposite effect: higher profitability loosens bank borrowing constraints. This enables profitable banks to take …

lead to significant changes in the competitive environment should banks consider adding a granularity adjustment to the …