This Article is the first to analyze an unexplored but critical change in how modern banks are governed: the rise of … boards. Using novel empirical evidence, we show that lawyer-directors at banks are associated with efficient changes in risk … management and significant increases in bank value. In particular, banks with lawyer-directors assume more risk in ordinary (non …

In this chapter we describe stress testing at banks covering the major products and businesses in which banks engage …

European banks are determined by a risk-return trade-off. Banks have been shown to disproportionally invest in bonds issued by … 2018 for a sample of 76 European banks. Using the Sharpe ratio for the risk-return assessment, we find that over the entire … period banks' investments and divestments of sovereign bonds are characterized by rational risk-return considerations …

Hypothesis, under which stress-tested banks reduce credit supply – particularly to relatively risky borrowers – to decrease their … credit risk. The findings do not support the Moral Hazard Hypothesis, in which these banks expand credit supply … banks, banks that passed the stress tests, and the earlier stress tests …

smaller firms as compared to larger firms. As banks become more stable, leverage increases and this increase is more …