CoCo bond into bank shares. In order to check the robustness of our findings, we consider different CoCo designs (write …The Liikanen Group proposes contingent convertible (CoCo) bonds as a potential mechanism to enhance financial stability … in the banking industry. Especially life insurance companies could serve as CoCo bond holders as they are already the …

increase to the minimum capital requirement of a firm's primary bank is associated with 3 percent less borrowing, relative to … firms not facing increased capital requirements to their primary bank. While firm borrowing is sensitive to capital … requirements of their primary bank, I find, on average, no material effect on firm's assets growth as firms are able to substitute …

necessary to measure the principal risks that each bank must afford and manage. So we first consider the role, functions and …

The experience of the 2007-09 financial crisis has showed that the bank capital regulation in place was inadequate to … deal with "manufacturing" tail risk in the financial sector. This paper proposes an incentive-based design of bank capital … regulation aimed at efficiently dealing with tail risk engendered by bank top managers. It has two specific features: (i) first …

The global financial crisis has highlighted the limitations of risk-sensitive bank capital ratios. To tackle this … steady state value of the regulatory minima for the two ratios strongly depends on the riskiness and the composition of bank …

market risk for bank equities in the case of an emerging market setting, Turkey. The analysis reveals that maturity … composition of a bank's loans, the share of trading income in a bank's overall revenue stream and its foreign-ownership structure … by investors as safer companies to invest in while increases in trading income as a source of bank's overall revenue …