a decrease in bank equity risk. We show theoretically, that keeping less capital in excess of the minimum capital … capitalization is a significant determinant of equity risk, and can explain why bank equity risk has not become lower after the Great …, reduced the cost of bank debt …

additional bank capital needs could be large. The paper concludes discussing uses of the mapping beyond PD valuation suitable for …

the public, long-term systemic risk among banks tends to increase. From the dynamic perspective, bank penalties represent … long-term. In this respect, bank penalties resemble still waters that run deep. In contrast, a settlement with regulatory …