This research aims to investigate the influence of bank capital, risk-based capital and bank capital buffers on the … behaviour of bank risk-taking by applying GMM on the data of US commercial banks ranges from 2002 to 2018. The findings show … that bank capital has a positive influence on total risk. However, risk-based capital and capital buffer have a negative …

In this paper we investigate the relationship between changes in risk and changes in leverage for a panel of Swiss … banks. Using market data for risk and both accounting and market data for capital for the period between 1990 and 2002, we … find a positive correlation between changes in capital and changes in risk, i.e., higher levels of capital are associated …

related to risk and regulatory arbitrage by nonregulated and regulated but less affected banks. …

Monetary policy transmission may be impaired if banks rebalance their portfolios towards securities to e.g. risk …-shift or hoard liquidity. We identify the bank lending and risk-taking channels by exploiting – Italian’s unique – credit and …

Extending a standard credit-risk model illustrates that a single factor can drive both expected losses and the extent …

A parsimonious extension of a well-known portfolio credit-risk model allows us to study a salient stylized fact … - abrupt switches between high- and low-loss phases - from a risk-management perspective. As uncertainty about phase switches … diversified within a phase. Likewise, the risk-management benefits of improving phase-switch forecasts increase with …

We show that risk-mitigating incentives dominate risk-shifting incentives in fragile banks. We study security trading … by banks, as banks can easily and quickly change their risk exposure within their security portfolio. For identification … less risk after financial stress shocks. Results hold within identical regulatory capital risk weights categories. Moreover …