This Paper investigates the effects of competition on credit risk, overall bank risk and revenue diversification for … Vietnam). We also examine the effects of financial crisis years for selected sample. We use three proxies of bank stability to … increasing overall bank risk level by utilizing various risk-mitigating strategies. During crisis years, banks failed to control …

relates to bank specific factors mainly cost-to-income ratio (COIR) and prices for bank lending and deposit products. In … general, we find that of the bank-specific factors NIM, COIR and prices for loans and deposits to be significantly related to … credit demand as having a positive and significant influence on bank credit risk …

affects a bank's risk-taking behavior and its future loan growth.Methodology – A sample of European banks (27 member countries … with bank fixed effects to control for unobserved characteristics that might affect the dependent variable.Findings – The … suggests that the current Basel III requirement on liquidity ratio can decrease bank's risking-taking behavior while not …

We analyze a variant of the Diamond-Dybvig (1983) model of banking in which savers can use a bank to invest in a risky … project operated by an entrepreneur. The savers can buy equity in the bank and save via deposits. The bank chooses to invest … in a safe asset or to fund the entrepreneur. The bank and the entrepreneur face limited liability and there is a …

Business cycles imply liquidity risks for banks. This paper explores how these risks influence bank lending over the … cycle. With forward-looking banks, lending cycles, credit booms and busts, or suppressed and highly fragile bank systems can … unpleasant effects on bank lending. Imposing countercyclical capital adequacy ratio may amplify procyclicality or result in …

A bank's decision on loan supply and capital structure determines its immediate bankruptcy risk as well as the future … availability of internal funds. These internal funds in turn determine a bank's future costs of external finance and future …-to-asset ratios, liquidity coverage ratios and regulatory margin calls on the dynamics of loan supply and bank stability. Only …

Euro area governments have committed to break the doom loop between bank risk and sovereign risk. But policymakers have …

how to treat sovereign exposures in bank regulation. Our contribution is to model endogenous sovereign portfolio …

ratio) and size (TBA) of the industry are linked to lower sovereign risk in general. Foreign bank penetration and …