Banks are compensated primarily through the net interest margin (NIM), which is the difference between the interest … environment that has persisted since the Great Recession, banks can no longer lower the short-term rates paid to their depositors …. The loan losses suffered by many banks due to the financial crisis, coupled with the low interest rate environment during …

mandatory for all banks was highly controversial. The regulators' view that such an inclusion would result in greater bank … unrealistic volatility in regulatory capital and would force banks to make costly changes to their investment and risk management … behavior. Using a comprehensive sample of U.S. banks we provide three pieces of evidence: First, we find that inclusion of …