College) gave the SUERF 2015 Annual Lecture on Capital and Banks. The conference focused on core aspects of banking reform … regulation, recovery and resolution, and risk culture. …

College) gave the SUERF 2015 Annual Lecture on Capital and Banks. The conference focused on core aspects of banking reform … regulation, recovery and resolution, and risk culture. …

The determinants of default risk of banks in emerging economies have so far received inadequate attention in the … the economy. Public sector banks have shown significant performance in containing bad debts. Private banks have continued … banks, apart from other accepted determinants of profitability, asset size has no significant impact on profitability. …

. Supervisors forcing banks to recognize losses could choke off lending and amplify local economic woes. But stricter supervision … could also change how banks assess and manage loans. Estimating such effects is challenging. We exploit the extinction of … first show that the OTS replacement indeed resulted in stricter supervision of former OTS banks. Next, we analyze the …

liquidity. We give an overview of applications to stress testing, including both microprudential and macroprudential stress … banks …

This paper examines banks' disclosures and loss recognition in the financial crisis and identifies several core issues …, banks' disclosures about relevant risk exposures were relatively sparse. Such disclosures came later after major concerns … about banks' exposures had arisen in markets. Similarly, the recognition of loan losses was relatively slow and delayed …

financial stability. Our analysis suggests that, going into the financial crisis, banks' disclosures about relevant risk … exposures were relatively sparse. Such disclosures came later after major concerns about banks' exposures had arisen in markets …. Similarly, banks delayed the recognition of loan losses. Banks' incentives seem to drive this evidence, suggesting that …

We examine the system-wide effects of liquidity regulation on banks’ balance sheets. In the general equilibrium model … requirements induce banks to invest in such complex assets. We evaluate the welfare properties of combining liquidity regulation …, banks have to hold liquid assets, and choose among illiquid assets varying in the extent to which they are difficult to …