In the recent financial crisis, risk management tools have been proven inadequate. Model risk, a key component of bank … the bank has to incentivize an agent to perform innovative improvement in the risk model technology. …

This article explores the effect of delays in updating prudential regulation on countries' likelihood of experiencing … banking crises, and it disentangles the impact of different aspects of regulation on crisis onset. I argue that delays in … revising banks' prudential regulation allow banks to adopt risky behavior. This increases a country's vulnerability to systemic …

We model dynamic bank capital structure under three optimally-designed regulatory regimes dealing with potential …

Are bank resolution regimes effective enough to improve financial stability? We look at the effect of the new bank … results suggest that centralized regulation has heterogeneous effects depending on the country's development degree. Improving …