, policymakers, and bank managers for better decision making. …

We exploit variation in commercial bank capital ratios across states to identify the impact of commercial bank balance … indicate a lack of substitutes for bank funding both in the short and long run. This lack of substitutes implies a notable … highlight the potential effects that bank balance sheet pressures, for example, from tightening capital adequacy standards, such …

We exploit variation in commercial bank capital ratios across states to identify the impact of higher capital ratios on …

recognizing greater risks and losses, can lead to solvency problems that look like liquidity (bank-run) crises. Regulatory …

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 …

the design of the loss absorption mechanism affects the stability of bank funding and distinguish between Conversion …. As we show, the first two loss absorption mechanisms unambiguously improve a bank’s stability of funding position. By … uncertainty regarding a bank’s ex post solvency position. Bank managers, investors as well as supervisors and regulators should be …

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. …