Limited liability and asymmetric information between an investment bank and its lenders provide an incentive for a bank … competition is likely to suffer from the same type of information asymmetry which induced the private market failure and which …

-generating process) together with the stress test result (signal). Disclosing two pieces of information is a typical procedure used in … stress tests. By optimally choosing these two signals, supervisors can deliver superior information to prudent investors and … disclose an uninformative signal. -- Stress Tests ; Supervisory Information ; Bayesian Persuasion ; Multiple Receivers …

asymmetric information. Asymmetric information prevents depositors from charging an actuarially-fair interest rate based on … and the policymaker have no information about banking risk, only a uniform leverage constraint is possible. In this case …

risk by banks. This paper provides a signaling explanation for this "risk race." If banks' returns can be observed while … equilibria that are all characterized by excessive risk taking as compared to the perfect information case …