This study analyzes the effect that banks' investments in corporate social responsibility (CSR) have on bank … performance. I find that banks' investments in CSR have a positive impact on financial performance, measured in terms of both … constituents value bank CSR activities. I find that CSR-related value creation is primarily a result of banks' external investments …

disciplining banks' risk choice. Comparisons are conducted between equity, subordinated debentures (SD), and uninsured deposits (UD …) as funding sources. The model, adapted from Repullo (2004), analyzes the effectiveness of regulatory capital when banks … although all three instruments can induce market discipline on banks, equity weakly dominates SD and UD (with SD weakly …

, irrelevant, or very weak. For example, the return on equity contains a risk premium that must go down if banks have more equity … also incorrect to translate higher taxes paid by banks to a social cost. Policies that subsidize debt and indirectly … penalize equity through taxes and implicit guarantees are distortive. Any desirable public subsidies to banks' activities …

In an investigation of banks' loan pricing policies in the United States over the past two decades, this study finds … supporting evidence for the bank risk-taking channel of monetary policy. We show that banks charge lower spreads when they lend … compared to periods of high short-term rates. The interest discount that banks offer riskier borrowers when short-term rates …

risk premium that must go down if banks have more equity. It is thus incorrect to assume that the required return on equity … remains fixed as capital requirements increase. It is also incorrect to translate higher taxes paid by banks to a social cost … example, by the Basel III agreement is not necessary for banks to perform all their socially valuable functions and likely …