Business cycles imply liquidity risks for banks. This paper explores how these risks influence bank lending over the … cycle. With forward-looking banks, lending cycles, credit booms and busts, or suppressed and highly fragile bank systems can … unpleasant effects on bank lending. Imposing countercyclical capital adequacy ratio may amplify procyclicality or result in …

of bank failure is sufficiently large, the surplus as well. Our results in overall highlight the need to take into …

To address the moral hazard problem that can motivate bank executives to take excessive risks and to fail to raise … regulatory capital requirements and well before its contingent convertible securities convert into equity. The Swiss Bank UBS has … compensation if the bank's regulatory capital ratio falls below 7.5%, and its contingent convertible debt is set up to convert into …

We use a novel, household opinions-based measure – Public Confidence in a Bank – to explore the role of bank-level and … banks publicly monitored during 2010–2017. We find that public confidence in a bank is highly sensitive to the industry …-level financial stability indicators, but less sensitive to bank-level risk characteristics. This result reveals an important role of …