We develop a dynamic model of banking to assess the effects of liquidity and leverage requirements on banks' insolvency … requirements with leverage requirements reduces drastically both the likelihood of default and the magnitude of bank losses in …

of non-financial firms' leverage carry over to banks, except for banks whose capital ratio is close to the regulatory … important determinant of banks' capital structures and that banks' leverage converges to bank specific, time invariant targets …. -- Bank capital ; capital regulation ; capital structure ; leverage …

of non-financial firms' leverage carry over to banks, except for banks whose capital ratio is close to the regulatory … important determinant of banks' capital structures and that banks' leverage converges to bank specific, time invariant targets …

This paper documents that standard cross-sectional determinants of firm leverage also apply to the capital structure of …