We analyze the emergence of systemic risk in a network model of interconnected bank balance sheets. The model … bank's individual contribution to systemic risk diverges from the optimal macroprudential capitalization of the banks from …

significantly influencing the risk-taking attitudes of bank managers. Particularly, we intend to substantiate the theory that banks … banking sectors due to a missing ability to monitor bank managers. Our results underline that these problems appear to mislead … bank managers showing an unreasonable risk-taking behavior. In a first stage, we rely on a theoretical model explaining …

anticipation of this bailout undermines a bank's private incentive to impose a bail-in. In the resulting equilibrium, bail-ins are …

Business cycles imply liquidity risks for banks. This paper explores how these risks influence bank lending over the … cycle. With forward-looking banks, lending cycles, credit booms and busts, or suppressed and highly fragile bank systems can … unpleasant effects on bank lending. Imposing countercyclical capital adequacy ratio may amplify procyclicality or result in …

controlling for a number of bank and country characteristics and contrary to what happens for a non-Basel II bank, for a Basel II … bank a higher cost of equity is not associated with a higher ratio between risk-weighted assets and total assets. These …