evidence that rapid credit growth as a measure of excessive risk taking in lending serves as a precursor to worsening loan … portfolio quality. We observe, based on a unique data set, that banks in the region increasingly employ advanced risk management …

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 …

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 …

The aim of this paper is to assess how German savings banks adjust capital and risk under capital regulation. We … fewer restrictions with regard to the impact of regulation on capital and risk adjustments. Besides, we complement our … and risk adjustments depends on the amount of capital the bank holds in excess of the regulatory minimum (the so …

The aim of this paper is to assess how German savings banks adjust capital and risk under capital regulation. We … coordination of capital and risk adjustments depends on the amount of capital the bank holds in excess of the regulatory minimum … while simultaneously lowering risk. In contrast, banks with high capital buffers try to maintain their capital buffer by …

fluctuation is stronger for savings banks than for cooperative banks, as, for savings banks, risk-weighted assets fluctuate more … not decrease risk-weighted assets in a business cycle downturn by more than well-capitalized banks. This finding seems to …

the global over-the-counter (OTC) derivatives markets, where significant counterparty credit risk prevails. In this paper …, we deal with risk under Basel III banking regulation and provide credit valuation adjustment (CVA) modelling, which is a … measure of the market value of counterparty credit risk. We use simulated data to develop a stress test model to determine the …