We analyze the relationship between bank size and risk-taking under the New Basel Capital Accord. Using a model with … imperfect competition and moral hazard, we show that the introduction of an internal ratings based (IRB) approach improves upon … a competitive advantage and, due to fiercer competition, pushes smaller banks to take higher risks. This may even lead …

This article focuses on the relationship between Fintech and bank risk-taking behavior. Since Robo-Advisor is one of … medium-sized banks from 2011 to 2016. We found that the development of Fintech has significantly reduced bank risk …-taking level. This result is still valid after the robustness test of replacing the bank's risk-taking index and replacing the …

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 …

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 …

We study the impact of higher bank capital buffers, namely of the Other Systemically Important Institu- tions (O …

Research shows that bank competition affects general economic and banking-related outcomes, but much less is known … that bank competition significantly reduces borrowers' risk-taking. In response to bank competition, firms invest in more … R&D risk. We also find that the decline in risk-taking is concentrated in operating accruals' volatility. Bank …

This study investigates how bank competition affects the transmission of monetary policy through risk-taking channel … lending is enhanced by bank competition. We find that transmission of monetary policy through risk taking channel vary … according to bank competition. Risky lending by banks with poor capital during the low interest rate period is enhanced by bank …

in safe lending, while others engage in risk shifting and (ii) a competition to risk shift emerges whereby loans to … subprime borrowers carry negative NPVs. The dispersion of bank risk generated by this sorting is magnified in more unequal …