Our paper addresses firm size as a driver of systematic credit risk in loans to small and medium enterprises (SMEs …). Key contributions are the use of a unique data set of SME lending by over 400 German banks and relating systematic risk to … particularly rich and well developed credit market for SMEs in Germany. We estimate asset correlations as the key measure of …

flat capital requirements if the approach is applied uniformly across banks and if the costs of implementation are not too … high. However, the banks' right to choose between the standardized and the IRB approaches under Basel II gives larger banks … a competitive advantage and, due to fiercer competition, pushes smaller banks to take higher risks. This may even lead …

banks using a non-parametric Monte Carlo re-sampling method following Carey [1998]. Our results are based on a panel data … set containing both loan and internal rating data from the banks complete business loan portfolios over the period 1997 … businesses in the sample is rated by both banks, we can generate loss distributions for SME, retail and corporate credit …

mortgage-specialized banks raise prices more than their competitors do. Second, risk-weighting schemes linked to borrower risk … intended effect in shifting mortgages from less resilient to more resilient banks, but stricter capital requirements do not … appear to have discouraged less resilient banks from risky mortgage lending. …

Banks in the Czech Republic maintain their regulatory capital ratios well above the level required by their regulator … stemming from capital buffers and Pillar 2 add-ons on the capital ratios of banks holding such extra capital. The results … provide evidence that banks shrink their capital surplus in response to higher capital requirements. A substantial portion of …

flat capital requirements if the approach is applied uniformly across banks and if the costs of implementation are not too … high. However, the banks' right to choose between the standardized and the IRB approaches under Basel II gives larger banks … a competitive advantage and, due to fiercer competition, pushes smaller banks to take higher risks. This may even lead …

. Using a model with imperfect competition and moral hazard, we find that small banks (and hence small borrowers) may profit … from the introduction of an internal ratings based (IRB) approach if this approach is applied uniformly across banks …. However, the banks' right to choose between the standardized and the IRB approaches unambiguously hurts small banks, and …

We introduce banks, modeled as in Diamond and Rajan (JoF 2000 or JPE 2001), into a standard DSGE model and use this … framework to study the role of banks in the transmission of shocks, the effects of monetary policy when banks are exposed to …

This paper studies loan activity in a context where banks must follow Basel Accord-type rules and acquire financing …

The paper discusses the reform of capital regulation of banks in the wake of the financial crisis of 2007/2009. Whereas … a key role in allowing banks to be undercapitalized prior to the crisis, with strong systemic effects for deleveraging …