In the wake of recent crisis developments in the US and Europe, non-bank credit channels have often been portrayed as … data. The available evidence actually points towards a correlation between the development of non-bank credit and higher …

a certain critical level. The sample covers during the period 2000–2007 commercial baking sector of Europe and USA. The …

lower the default risk of a bank. However, we find no evidence of cash bonuses exerting a risk-reducing effect when banks … are financially distressed or when banks operate under weak bank regulatory regimes. Our results link bonus compensation …

bank CEOs. For a panel of US and European banks, we employ the Merton distance to default model to estimate how bonus … payments and option holdings impact the level of bank default risk targeted by CEOs. We find that CEO cash bonuses reduce …

is mainly driven by non-performing loans and by the negative impact of policy rates on bank interest margins. The higher … US bank valuations are mainly driven by higher profitability and better cost efficiency. Our results for European banks … stress the importance of timely NPL resolution and imply that low-for-long monetary policy may harm bank health …