Bank capital requirements are based on a mix of market values and book values. We investigate the effects of a policy … banking organizations. Our analysis is based on security-level data on individual bank portfolios matched to bond …

firm incentives in a post-reform financial system. -- Financial regulatory reform ; corporate governance ; bank charter … ; bank insolvency …

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 …

risk management. This infrastructure should identify, measure, monitor and control the risks that the bank is exposed to …

since the financial crisis of 2007-08 to address weaknesses in bank risk culture. The paper suggests that shortcomings in …

This paper investigates the effectiveness of supervisory discipline on bank risk over the years immediately before … public. Access to this information allows a complete analysis of the effects of regulatory enforcement actions on bank … effective tool for slowing declines in a bank's capital ratios and informal actions were relatively less potent. Post …

-dependent bank capital regulation (CR). Bank leverage choices are subject to the risk-return trade-off: high leverage increases … expected return on capital, but also increases return variance and bank failure risk. Financial frictions imply that bank … leverage choices are socially inefficient, providing scope for a welfare-enhancing CR that imposes a cap on bank leverage. The …