We highlight the ex ante risk-shifting incentives faced by a bank's shareholders/managers when CoCos (contingent … shareholders will receive upon the CoCo's conversion under CoCo designs widely used in practice. Specifically we show that for …

perquisites that yield private benefits). The privately optimal level of bank leverage is neither too low nor too high: It … substitution induced at high levels of leverage. However, when correlated bank failures can impose significant social costs …, governments may have no option but to bail out bank creditors. Anticipation of this generates an equilibrium featuring systemic …

continues to rise unabated. Among characteristics associated with integration, we find that bank size is the most significant …

median US bank's integration has increased significantly post-2005. During the great recession and the Eurozone crisis …, integration levels among US banks display a significant rise over and above their trend. We find that bank size is the most … association with bank integration while the net interest margin and combined tier 1 and tier 2 capital ratio influence bank …

Ongoing financial innovation and greater information availability increase the tradability of bank assets and reduce … banks' dependence on individual bank managers as private information in the lending process declines. In this paper we argue … bank managers and shareholders becomes less severe. Consequently, banks' capital structure needs to be less concerned with …

bank/firm data, we find that public guarantees reduce allocative efficiency. With guarantees in place, poorly performing …