highlight an opposite effect: higher profitability loosens bank borrowing constraints. This enables profitable banks to take … risk on a larger scale, inducing risk-taking. This effect is more pronounced when bank leverage constraints are looser, or …

individual asset holding data of German banks. I find that those banks operating with tight regulatory constraints pick the … selection allows banks to increase the return on the capital required for an ABS investment by a factor of four. …

yield. Studying securitization exposures on the balance sheets of German banks, I show evidence consistent with this … prediction. Banks with tight regulatory constraints (low capital adequacy ratios) invest more in higher yielding ABSs … conditionally on rating-implied regulatory risk weights. ABS investments of constrained banks tend to perform worse ex post in terms …

Bank leverage ratios have made an impressive and largely unopposed return; they are mostly used alongside risk … financial instability are the Spanish and Irish banking crises, which resulted from nothing more sophisticated than … straightforward real estate loans. Bank leverage ratios are primarily seen as a microprudential measure that intends to increase bank …

taking effect until 2013, we hypothetically apply the capital stability standard on a sample of East Asian banks in the …

endogenous bank fragility and slow recovery from crises. When banks' investment decisions are not contractible, depositors form …I propose a dynamic general equilibrium model in which strategic interactions between banks and depositors may lead to … complementarities and possibly multiple equilibria: in response to an increase in funding costs, banks may optimally choose to pursue …

endogenous bank fragility and slow recovery from crises. When banks' investment decisions are not contractible, depositors form …I propose a dynamic general equilibrium model in which strategic interactions between banks and depositors may lead to … complementarities and possibly multiple equilibria: in response to an increase in funding costs, banks may optimally choose to pursue …

We analyze securities trading by banks during the crisis and the associated spillovers to the supply of credit. We use … a proprietary dataset that has the investments of banks at the security level for 2005-2012 in conjunction with the … credit register from Germany. We find that - during the crisis - banks with higher trading expertise (trading banks) increase …

, a leverage ratio, to maintain financial stability, while taking account of the impact on credit provision. A change in …