We measure bank vulnerability in emerging markets using the distance-to-default, a risk-neutral indicator based on … 38 banks in 14 emerging market countries. Results show it can predict a bank''s credit deterioration up to nine months in … advance. The distance-to-default, hence, may prove useful for bank monitoring purposes …

loans, taking regulatory requirements into account. By easing its acceptance criteria a bank faces a trade-off between … banks to set stricter acceptance criteria, and that increased competition in the banking industry leads to riskier bank … behavior. In an extension of our basic model, we show that it may be beneficial for a bank to hold more equity than prescribed …

large to smaller banks would increase overall efficiency. The paper finds no significant correlation between bank efficiency …

-to-assets ratio is ambiguous. Similarly, as competition increases, the probability of bank failure can either increase or decrease. We … literature are negatively and significantly related to measures of bank competition. Thus, there is no evidence of a trade …-off between bank competition and stability, and bank competition seems to foster banks'' willingness to lend …

associated with a specific bank. Our approach defines the banking system as a portfolio of banks and infers the system …

We examine changes in bank credit across a wide range of emerging market economies during the last decade. The rich …