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 …

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 …

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

This paper addresses the trade-off between additional loss-absorbing capacity and potentially higher bank risk … increase their risk-taking. This increase in risk-taking however, should be more than outweighed by the benefits of higher …

We investigate the impact of changes in capital of European banks on their risk-taking behavior from 1992 to 2006, a … capital banks hold. First, we assume that risk changes depend on banks' ex ante regulatory capital position. Second, we … consider the impact of an increase in each component of regulatory capital on banks? risk changes. We find that, for highly …

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 …