The rating-sensitive capital charges on credit risks under the new Basel Accord are likely to increase the volatility … of minimum capital requirements, which may force banks to hold larger capital cushions in excess of minimum requirements … of capital cushion is assumed to satisfy a value-at-risk-type constraint. …

We study how contingent capital affects banks' risk choices. When triggered in highly levered states, going …-concern conversion reduces risk-taking incentives, unlike conversion at default by traditional bail-inable debt. Interestingly …, contingent capital (CoCo) may be less risky than bail-inable debt as its lower priority is compensated by a lower induced risk …

We study how contingent capital affects banks' risk choices. When triggered in highly levered states, going …-concern conversion reduces risk-taking incentives, unlike conversion at default by traditional bail-inable debt. Interestingly …, contingent capital (CoCo) may be less risky than bail-inable debt as its lower priority is compensated by a lower induced risk …

developments in banks’ balance sheets, profitability and risk-bearing capacity and analyses their relevance for monetary policy. We …As the euro area has a predominantly bank-based financial system, changes in the composition and strength of banks …

systemically-important banks (SIBs) remain intact. In this paper, we use a jump diffusion option-pricing approach to provide … estimates of implicit subsidies gained by these banks due to the expectation of protection to creditors provided by governments …

announcements. Our findings appear to be more pronounced for firms with more information asymmetry, lower credit ratings and loans …

near-frictionless refinancing opportunities-led to vastly increased systemic risk in the financial system. Individually …

Claiming that the implicit cost of deposit insurance is an alternative proxy for risk-taking behavior, we examine the … management on the risk of Thai financial institutions. Our empirical results suggest that, during 1994-1996, the largest … shareholders engage in low risk-taking activities when they hold large cash flow rights and have low deviation of cash flow from …