ratio on commercial bank risk-taking over the period from 2002 to 2019 using a two-step GMM method. The finding reveals that …

Following the global financial crisis of 2008/2009, many European countries introduced bank levies to enable financial … institutions to share in the costs of future banking crises via resolution and restructuring funds. Simultaneously, bank levies can … from banks’ balance sheets, this report investigates to what extent bank levies have reduced leverage ratios and what role …

' asset portfolios. Using a sample of large European banks, we show that bank capital not only increases with regulatory …

to increase risk. However, since bank assets are risky debt claims, bank equity resembles a subordinated debt. Using this … assumption, and considering the strategic interaction between a bank and its debtor, we argue that risk shifting is limited to … with bank capital. Thus, increasing a bank's capital affects stability, not only through the additional capital buffer, but …

This study develops a multi-period structural model to value bank subordinated debt (subdebt) under different … risks, bank characteristics and regulatory policies affect subdebt prices and yield spreads. It finds that the … have the opposite effects. Also, subdebt spreads are less sensitive to bank risk when PCA is imposed than when capital …

to be larger at banks more constrained ex ante by the leverage limit. Despite increased asset risk, overall bank risk … suggest that the recent recalibration will curb those incentives without necessarily increasing bank risk. …

Central Bank's policy-rate cuts in mid-2014. The pass-through of the rate cuts to banks' funding costs differs across the euro … provide a simple model of an augmented bank balance-sheet channel where in addition to costly external financing, there is …