What is the impact of a sudden and sizeable increase in bank capital requirements on the lending activity by directly … affected banks and by non-affected non-bank financial institutions (NBFIs)? To answer this question, we apply a difference … activities, in riskier and more competitive borrower segments, but NBFIs do not seem to rely on increased bank funding to finance …

models in terms of correlation with actual bank losses and CDS spreads. The paper also shows how extreme measures can be used …

corresponding imperfect substitutability between private and commercial credit for the entrepreneur's relationship bank is then …

In this paper, we develop a contingent claim model to evaluate a bank’s equity and liabilities that integrates the … regulation. The barrier options theory of corporate security valuation is applied to the contingent claims of a bank. The barrier … products (WMPs) and entrusted loans (ELs). The optimal bank interest margin, i.e., the spread between the loan rate and the …