Traditional bank competition policy seeks to balance efficiency with incentives to take risk. The main tools are rules … argue that bank competition policy should be reoriented to deal with the too-big-to-fail (TBTF) problem. It should also …

Korea was hit hard by the 2008 global financial crisis, with the foreign bank deleveraging channel coming prominently … through the bank lending channel to a slowdown in credit growth. The analysis finds that a sharp decline in external funding …

presents a market-based structural top-down stress testing methodology that relies in market-based measures of a bank …

due to bank funding shortages from the sovereign debt crisis were a major factor behind the lending slowdown in late 2011 …

This paper develops a model to assess how monetary policy rates affect bank risk-taking. In the model, a reduction in … bank extracts from borrowers. Under limited liability, this increased profitability affects only upside returns, inducing … the bank to take excessive leverage and hence risk. Excessive risk-taking increases as the interest rate decreases. At a …