Recently, banking literature has had a quest for appropriate pricing of bank loans under the new Basel II rules and has … price bank's corporate loans, aiming at making bank managers aware of the creation/destruction of shareholder value. We show …

We model the evolution of stylised bank loan portfolios to assess the impact of IFRS 9 and US GAAP expected loss model …

regulatory liquidity requirements on bank behavior. A multi-stage decision situation allows for considering the interaction … between credit risk and liquidity risk of banks. This interaction is found to make a risk neutral bank behave as if it were …

A bank's decision on loan supply and capital structure determines its immediate bankruptcy risk as well as the future … availability of internal funds. These internal funds in turn determine a bank's future costs of external finance and future …-to-asset ratios, liquidity coverage ratios and regulatory margin calls on the dynamics of loan supply and bank stability. Only …

We develop a novel dynamic model of banking showing that aggregate bank capital is an important determinant of bank …. Because of this financial friction, banks build equity buffers to absorb negative shocks. Aggregate bank capital determines …

Bank capital requirements would entail large social costs if they made resource allocation suboptimal and banking …

This paper studies the impact of higher bank capital requirements on corporate lending spreads. We conduct an empirical … analysis using granular bank- and loan-level data for Switzerland. Overall, we find a positive relationship between capital …