Bank leverage ratios have made an impressive and largely unopposed return; they are mostly used alongside risk …-weighted capital requirements. The reasons for this return are manifold, and they are not limited to the fact that bank equity levels … straightforward real estate loans. Bank leverage ratios are primarily seen as a microprudential measure that intends to increase bank …

regulatory requirements. Our analytic characterization of the bank policy choices shows that imposing solely liquidity … requirements leads to lower bank losses in default at the cost of an increased likelihood of default. Combining liquidity … requirements with leverage requirements reduces drastically both the likelihood of default and the magnitude of bank losses in …

This paper documents large cross-country variation in the relationship between bank competition and bank stability and …

This paper documents large cross-country variation in the relationship between bank competition and bank stability and …

This study develops a multi-period structural model to value bank subordinated debt (subdebt) under different … risks, bank characteristics and regulatory policies affect subdebt prices and yield spreads. It finds that the … have the opposite effects. Also, subdebt spreads are less sensitive to bank risk when PCA is imposed than when capital …

This paper empirically examines the impact of market discipline on bank risk taking. Using a sample of 321 financial … that the negative impact of market discipline on bank risk is stronger: in the presence of a risk-adjusted insurance … premium, as bank capital increases and in the post-global financial crisis period. The results are robust to alternative …

geographic distribution of bank lending, matched lender-borrower financial statements, and borrower defaults, we find that the …

We examine the effects of opacity on bank valuation and the synchronicity of bank equity prices over the years 2000 … rise in bank equity share prices, decrease in transparent asset holdings by banks, and greater price synchronicity …