decrease a bank's incentive to take risk with its remaining ineligible assets. A greater capacity to respond to liquidity … illiquidity disadvantages of holding risky assets. We then empirically estimate the effect of two liquidity regulations on bank … stress increases the potential profits a bank would put at stake by making risky investments, but it also mitigates the …

firm incentives in a post-reform financial system. -- Financial regulatory reform ; corporate governance ; bank charter … ; bank insolvency …

introduction of liquidity regulations. These changes were motivated in part by the argument that central bank lending entails …During the 2007-09 financial crisis, there were severe reductions in the liquidity of financial markets, runs on the … Reserve, in its role as lender of last resort (LOLR), injected extraordinary amounts of liquidity. In the aftermath, lawmakers …

The theory of financial intermediation highlights various channels through which capital and liquidity are interrelated …. Using a simultaneous equations framework, we investigate the relationship between bank regulatory capital and bank liquidity … determinants of bank capital buffer has neglected the role of liquidity. On the whole, we find that banks decrease their regulatory …

, policymakers, and bank managers for better decision making. …

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

introduction of liquidity regulations. These changes were motivated in part by the argument that central bank lending entails …During the 2007-09 financial crisis, there were severe reductions in the liquidity of financial markets, runs on the … Reserve, in its role as lender of last resort (LOLR), injected extraordinary amounts of liquidity. In the aftermath, lawmakers …