−Small bank equity premium and bailout insurance is fairly priced for equityholders in that there is no difference between big and …Contrary to public perception and previous literature on public bailout subsidies, we find over the recent 43-year … period equityholders in big banks paid fairly for TBTF bailout insurance in terms of equity returns. In normal (non …

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 …

Bank leverage ratios have made an impressive and largely unopposed return; they are mostly used alongside risk …-weighted capital requirements. The reasons for this return are manifold, and they are not limited to the fact that bank equity levels … straightforward real estate loans. Bank leverage ratios are primarily seen as a microprudential measure that intends to increase bank …