enhances the incentives of banks to expand within Euroland. Yet, while the currency bias in bank portfolios will be eliminated …

private information. Competition for talent sets incentives to offer bonuses inducing risk-taking that is excessive not only …-taking are increasing with competition. Thus, our model offers a rationale why bonuses are paid even when reducing the expected …

This paper investigates whether greater competition increases or decreases individual bank and banking system risk … bank deregulation, we provide robust evidence that greater competition increases both individual bank risk and a bank …. Using a new text-based measure of competition, and an instrumental variables analysis that exploits exogenous variation in …

This paper investigates whether greater competition increases or decreases individual bank and banking system risk … bank deregulation, we provide robust evidence that greater competition increases both individual bank risk and a bank …. Using a new text-based measure of competition, and an instrumental variables analysis that exploits exogenous variation in …

inclined to pledge outside collateral than is the low-risk borrower. However, this finding does not hold when the bank can …. We also show that a bank’s incentive to sort borrowers may induce investment to preserve the value of the inside …

under asset buyouts can be offset by borrowing against the assets. If investment opportunities follow the bank, equity …

This paper models the strategic interaction between a rating agency, a banking sector and a bank regulator who lacks … information about bank asset risk. The regulator can either (1) make bank capital requirements contingent on credit ratings; or (2 … constrain high risk bank investment without simultaneously reducing overall investment volume. However, if collusion between the …