The paper analyzes a very stylized model of crises and demonstrates how the degree of strategic complementarity in the … liquidity risk and characterizes them. Both a solvency (leverage) and a liquidity ratio are required to control the …

equilibrium setting, capital requirements and lobbying contributions are determined as the outcome of bargaining between banks and … politicians. We show that bankers and politicians agree on lobbying contributions and capital regulation that renders banks …

the banking industry was under capital regulation. Using the panel data of commercial banks in the USA and non-USA from … theory. In addition, for banks with low capital adequacy ratio, capital and risk adjustment are negatively correlated. This … applies to the verification of bankruptcy cost avoidance theory and managerial risk aversion theory. Finally, banks with lower …

In 2007 the world faced one of the biggest financial crises ever. It was the third important financial crisis in the … worldwide political institutions to approve a more rigorous regulation on financial institutions and predict financial crises … enhancements are in accordance with our analyzed shortcomings. Some approaches like the introduction of a leverage ratio are …

banks in each Europe, Germany and USA between 1994-2009. We identified different main reasons for the banks in each region … to securitize that are in line with observable behavior of market participants. US banks use securitization mainly as … and performance improvement. For German banks securitization seems to be an appropriate funding tool. The proposed …

We take issue with claims that the funding mix of banks, which makes them fragile and crisisprone, is efficient because … banks' distress and default cause, such claims are invalid because banks have multiple small creditors and are unable to … entails costs to society, such regulation actually helps create useful commitment for banks to avoid the inefficiently high …

College) gave the SUERF 2015 Annual Lecture on Capital and Banks. The conference focused on core aspects of banking reform …

We take issue with claims that the funding mix of banks, which makes them fragile and crisis-prone, is efficient … that banks' distress and default cause, such claims are invalid because banks have multiple small creditors and are unable … funding mix entails costs to society, such regulation actually helps create useful commitment for banks to avoid the …

stages (regulation and supervision, securitization, and a run on investment banks), each stage associated with a particular …