Bank capital, and a bank's liquidity position, are concepts that are central to understanding what banks do, the risks … that can absorb losses that could otherwise threaten a bank's solvency. Meanwhile, liquidity problems arise due to … interactions between funding and the asset side of the balance sheet — when a bank does not hold sufficient cash (or assets that …

Using bank-level panel da ... …

first. Next, a ‘fundamental' bank valuation model is introduced. Based on sound economics and finance principles, it allows …

This study examines the impact of bank liquidity on bank risk taking. Using quarterly data for U.S. bank holding … alternative bank risk and liquidity proxies, including some new liquidity measures advocated under the Basel III regulatory …. However, our results show that bank size usually limits banks from taking more risk when they are flushed with liquidity but …

-risk-based capital ratios and bank risk-taking. The findings also demonstrate that an increase in capital buffer ratios decreases the …