Bank capital requirements are based on a mix of market values and book values. We investigate the effects of a policy … banking organizations. Our analysis is based on security-level data on individual bank portfolios matched to bond …

analysis reveals that converting retail deposits into stablecoin issuers' deposits weakens a bank's liquidity coverage ratio … backing the stablecoins as central bank reserves or reinvest them in low-risk assets, making these funds a less effective … that when retail customers of bank A buy a stablecoin issued by a non-bank that keeps reserves at bank B, both banks could …

behavior and risk sensitivity of a risk-neutral bank. The bank is exposed to credit risk and may use credit default swaps (CDS …) for hedging purposes. Regulation is found to induce the risk-neutral bank to behave in a more risk-sensitive way: Compared …. Under the Substitution Approach in Basel II (and III) a risk-neutral bank will over-, fully or under-hedge its total …

Under a new Basel capital accord, bank regulators might use quantitative measures when evaluating the eligibility of …

firm incentives in a post-reform financial system. -- Financial regulatory reform ; corporate governance ; bank charter … ; bank insolvency …

imperfectly elastic supply of bank equity stemming from financial market segmentation. In our model, equity is costly and serves … and the design of bank stress testing. …