We study the effects of broadening the safety net on bank risk taking in Central Europe, using individual bank data and time-varying regulatory data. Further, we analyse the shareholder structure and its links with risk, as well as possible modifications it may introduce to the moral hazard...

We study credit policy in a unique sample of c.360 Polish cooperative banks between 2007–2012. We find evidence for income smoothing through loan loss provisions, indicating that cooperative banks take advantage of higher earnings to make reserves for periods when their profitability might...