We analyze the relationship between bank size and risk-taking under the New Basel Capital Accord. Using a model with …

The net interest margin (NIM) from the traditional intermediation function is pivotal for bank profitability and … solvency. Using a unique cross-country sample on bank internal rating based (IRB) models, we find that the NIM increases when … and higher investment in interest earning assets. Ultimately, IRB models improve the risk-return trade-off of a bank …

This study models the impact of new capital regulations proposed under Basel III on bank profitability by constructing … a stylized representative bank's financial statements. We show that the higher cost associated with a one … scheduled commercial banks, one-percentage point increase in capital ratio can be recovered by increasing the bank lending …

bias in corporate taxation. It is well known that this reform reduces bank leverage. This paper analyzes a novel …

This paper empirically examines how capital affects a bank's performance (survival and market share), and how this …

We estimate a structural model of bank portfolio lending and find that the typical U.S. community bank reduced its … effects (consistent with a reduction in the liquidity of assets held on bank balance sheets) and by reduced loan supply …