This paper analyses the effects of competition between banks with different ownership structures on financial stability, social welfare, risk-taking incentives and performance. Specifically, we present a model of strategic competition in the retail banking sector where a profit-maximizing bank,...

UBS recently announced it would pay part of the bonuses of 6,500 highly compensated employees with bonds that would be forfeited if the bank does not meet its capital requirements. This memo underscores the benefits of contingent deferred compensation and makes recommendations for how such...

While the Basel II capital requirements allow considerable flexibility to banks in choosing models for estimating exposure at default (EAD), it is unclear how much these internal estimates could be impacted by the choice of modeling approach. In this paper, we implement several estimation...

La version française de ce document est disponible à "http://ssrn.com/abstract=2198583" http://ssrn.com/abstract=2198583The study of risk management began after World War II. Risk management has long been associated with the use of market insurance to protect individuals and companies from...

The crisis in Europe has underscored the vulnerability of European bank funding models compared to international peers. This paper studies the drivers behind this fragility and examines the future of bank funding, primarily wholesale, in Europe. We argue that cyclical and structural factors have...

Though a large body of empirical studies on corporate governance have emerged during the last decade, most of them were related to non-bank firm governance and have narrowly focused on the bank governance issues. As such the objective of this paper is to narrow down this gap and to contribute to...

This paper provides a synthetic and evaluative survey of issues in corporate financial distress and bankruptcy. This area has moved into a public domain as a result of the recent global financial crisis that witnessed failures of many venerable institutions that got rescued by the government....

This research investigates the real effects of public liquidity provision. Using the Commercial Paper Funding Facility's (CPFF) eligibility criteria for non-financial commercial paper issuers as the identification strategy, we show that firms with access to the CPFF were able to mitigate the...