to increase risk. However, since bank assets are risky debt claims, bank equity resembles a subordinated debt. Using this …

variations of the Italian tax rates on productive activities (IRAP) across regions and over time (especially since the global … financial crisis). We show that banks endogenously respond to a reduction in tax rates by reducing nondeposit liabilities more … than deposits in addition to lowering leverage. The response on the asset side depends on the financial strength of the …

In this paper, we examine how the timeliness of loan loss recognition within the banking system affects borrowers' debt … structure. Using data from 55 countries, we find that more timely loan loss recognition reduces firms' reliance on bank debt …, consistent with firms relying less on bank debt due to more costly monitoring by banks. In addition, we find that this negative …

by a combination of repos, long–term debt, deposits and equity. Repos are a cheap source of funding, but they are subject …; second, it adds to the cost of long–term debt financing. These shadow costs limit the bank's appetite for cheap but unstable … depositor preference rule. We also analyze the impact of a liquidity coverage ratio, payout restrictions and a leverage ratio on …

This study examines the speed of adjustment of the leverage and regulatory capital ratios between 2002 and 2018 for … also show that large commercial banks adjust their regulatory ratios faster than leverage ratios. Furthermore, the speed of …