quantify the effect of favoritism. We find that firms with prior lending relationships or personal connections to bank … favoritism in bank lending …

Using supervisory data on operational losses from large U.S. bank holding companies (BHCs), we show that BHCs with …

of capital adjustment across different bank characteristics for the formulation of new bank regulations; particularly …

-risk-based capital ratios and bank risk-taking. The findings also demonstrate that an increase in capital buffer ratios decreases the …

to partially compensate for the changes resulting from the new rules: On average, if a bank’s capital ratio when measured … under the new rules was lower than under the old rules, then the bank took steps to increase its capital ratio, compared to … a bank whose capital ratio did not change with the new rules. This adjustment took place prior to the publication of the …

to individual banks in the Merton tradition (1974) as a combination put option for the deep tail of bank losses and a … knock-in stop-loss call on bank assets. This model expresses the value of taxpayer loss exposure from a string of defaults … as the value of this combination option written on the portfolio of industry assets. The exercise price of the call is …

been a persistent decline in average bank interest margins. In the literature, these phenomena are often explained using a … dataset with bank-level data on over 16,000 FDIC-insured U.S. commercial banks for a period ranging from 1992 to 2010, this … paper qualifies this chain of causality. We find that a bank's business model, measured using a multi-dimensional proxy of …