incentives for banks to take additional risk, potentially threatening the safety of banking and payments system. Commercial bank … regulators have responded to this increased potential for risk-taking by formally linking bank supervision and regulation to the … level of risks that banks take. In this study we analyze the safety and soundness (CAMEL) ratings assigned by bank …

these relationships become more powerful in our post- deregulation period"--Federal Reserve Bank of Chicago web site …"The deregulation of the banking industry during the 1990s provides a natural (public policy) experiment for …-based component of bank CEO compensation contracts. We also examine the relationships between equity- based compensation and risk …