highlight an opposite effect: higher profitability loosens bank borrowing constraints. This enables profitable banks to take … risk on a larger scale, inducing risk-taking. This effect is more pronounced when bank leverage constraints are looser, or …

individual asset holding data of German banks. I find that those banks operating with tight regulatory constraints pick the … selection allows banks to increase the return on the capital required for an ABS investment by a factor of four. …

yield. Studying securitization exposures on the balance sheets of German banks, I show evidence consistent with this … prediction. Banks with tight regulatory constraints (low capital adequacy ratios) invest more in higher yielding ABSs … conditionally on rating-implied regulatory risk weights. ABS investments of constrained banks tend to perform worse ex post in terms …

mortgage tax from being levied on borrowers to being levied on banks; (ii) some areas, for historical reasons, were exempt from … smaller number of lending relationships, not working for the lender, or facing less banks in their zip-code, thereby …-full tax pass-through, the tax shift increases banks' risk-taking. More affected banks reduce costly mortgage insurance in case …

Bank leverage ratios have made an impressive and largely unopposed return; they are mostly used alongside risk … financial instability are the Spanish and Irish banking crises, which resulted from nothing more sophisticated than … straightforward real estate loans. Bank leverage ratios are primarily seen as a microprudential measure that intends to increase bank …

banks well below the level of executive directors, we find that the size-pay nexus is strongest for investment banking … business units and for banks with a market-based business model. Thus, managerial compensation is most sensitive to size …

directors holding a PhD on boards of large Czech banks enhances bank stability captured by Z-score. Moreover, we detect risk …-enhancing implications of board size for the segments of building savings societies and small and midsized banks. As for average board tenure …

We analyze securities trading by banks and the associated spillovers to the supply of credit.Empirical analysis has … been elusive due to the lack of securities register for banks. We use a unique, proprietary dataset that has the … investments of banks at the security level for 2005-2012 in conjunction with the credit register from Germany. Analyzing data at …

-in effects on bank resilience appear mixed. While it incentivises banks to reduce risk-taking (e.g., increasing risk …

. Using a theoretical micro model, we show that a leverage ratio requirement can incentivise banks that are bound by it to … that a leverage ratio requirement would lead to a significant decline in the distress probability of highly leveraged banks. …-taking associated with the introduction of the Basel III Leverage Ratio. This is addressed in both a theoretical and empirical setting …