We develop a dynamic model to assess the effects of liquidity and leverage requirements on banks' insolvency risk. The … model features endogenous capital structure, liquid asset holdings, payout, and default decisions. In the model, banks face …

In this paper we use credit rating data from two Swedish banks to elicit evidence on these banks’ loan monitoring … the Swedish credit bureau. We test the banks’ abilility to forecast the credit bureau’s ratings and vice versa. We show … that one of the banks has a superior predictive ability relative to the credit bureau. This is evidence that bank credit …

core. The estimated model matches four facts about banks’ Tobin’s Q that summarize bank leverage dynamics. (1) Book and … nor market leverage constraints are binding for most banks; (4) bank leverage and Tobin’s Q are mean reverting but highly …

The relationship between banks and customers has contributed to several theories in banking economics. The quality of … the credit is crucial for banks. Banks classify the risk through quantitative and qualitative indicators. Quantitative … indicators are much used by banks, but qualitative indicators are also considered in credit risk evaluation. Taken together, they …

We develop a dynamic model of banking to assess the effects of liquidity and leverage requirements on banks' insolvency … risk. In this model, banks face taxation, flotation costs of securities, and default costs and maximize shareholder value …

core. The estimated model matches four facts about banks' Tobin's Q that summarize bank leverage dynamics. (1) Book and … nor market leverage constraints are binding for most banks; (4) bank leverage and Tobin's Q are mean reverting but highly …

a broad sample of firms. Descriptive and econometric results lend support to the traditional view that banks ask more … collateral, while the percentage of loans coming from foreign (public) banks has a negative (positive) impact. These latter …