This paper examines the effect of CoCo bonds that qualify as additional tier 1 capital on bank fundamentals. The … hypotheses suggesting that the regulatory design requirements for going-concern CoCos adversely affect bank stability …

value of the bank and its volatility by using an indifference curve model of the bank's choice of optimal risk. While the … first-best optimal risk maximises the value of the bank, the shareholders select suboptimally high risks under bail … consequences of the DAPR (Deviation from the Absolute Priority Rule) the bondholders are forced to closely monitor the bank …

This study reviews the existing literature on the determinants of bank-level deposit volatility and is the first to …, bank equity capitalization and funding risk that are identified as further determinants. Besides mapping avenues for future … research, the findings are relevant for bank management since they may help to improve efficiency of risk management routines …

increase their capital buffers – a policy supported by national bank regulators. This paper examines whether the issuance of … CoCo bonds provides the same reduction in bank default risk as the corresponding issuance of common equity by analyzing the … conversion features come with a lower subsequent volatility of the bank asset value, but are inferior to equity in terms of their …

Since the global financial crisis and the related restructuring of banking systems, bank concentration is on the rise … in many countries. Consequently, bank size and its role for macroeconomic volatility (or: stability) is the subject of … intense debate. This paper analyzes the effects of financial regulations on the link between bank size, as measured by the …