individual asset holding data of German banks. I find that those banks operating with tight regulatory constraints pick the … selection allows banks to increase the return on the capital required for an ABS investment by a factor of four. …

recent global financial crisis has proven just the opposite. The banks and regulators were not in a position to truly assess …

Basel “Standardized Approach,” will subsidize banks' systematically risky investments.Using an international sample of …

difference of unknown risk weight parameters between IRB and standardised approach, analyzes how Japanese banks adjusted the …

This study investigates whether banks and insurance corporations perform regulatory arbitrage by buying bonds with … inflated credit ratings. We argue that credit rating based capital requirements incentivize banks and insurance corporations to … results show that banks and insurance corporations invest more in bonds with inflated credit ratings, while this effect is …

regulatory regimes. Our findings suggest that corporate downgrades that increase capital requirements for lending banks under the …

individual asset holding data of German banks. I find that banks operating with tight regulatory constraints exploit the low risk …-sensitivity of rating-contingent capital requirements for ABS. Unlike unconstrained banks they systematically pick the securities … for yield allows constrained banks to increase the return on the capital required for an ABS investment by a factor of …