switching to IRB, banks' risk-weighted asset (RWA) densities are thus expected to diverge, especially across countries with … different supervisory strictness and risk levels. However, when examining 52 listed banks headquartered in 14 European countries … convergence can be entirely explained by differences in the size of the banks, loss levels, country risk, and/or time of IRB …

Using a multi-country panel of banks, we study whether better capitalized banks experienced higher stock returns during … associated with better stock market performance, most markedly for larger banks; (iii) the relationship between stock returns and …

view that monetary policy easing induces greater risk-taking by banks but also shows that the relationship between real … interest rates and banking risk is more complex. Ultimately, it depends on how much skin in the game banks have. The central …

This paper investigates the incentives for banks to bias their internally generated risk estimates. We are able to … by low-capital banks to improve regulatory ratios. At the portfolio level, the difference in borrower probability of … credits. In addition, we find that low-capital banks' risk estimates have less explanatory power than those of high …