transformation risk, which could result in excessive constraints on bank liquidity creation, thereby negatively affecting economic …

when deciding whether to renew their claims. Runs can cause a large bank's failure regardless of its book capital ratio …

unweighted leverage requirements, their differential impact on bank lending, and equity buffer accumulation in excess of … regulatory minima. Tighter risk-weighted capital requirements reduce loan supply and lead to an endogenous fall in bank … profitability, reducing bank incentives to accumulate equity buffers and, therefore, increasing the incidence of bank failure …

bank's financing structure. In our model the bank's assets consist of illiquid loans and liquid reserves and are financed … to an exogenous rollover risk. We show that the use of repos inflicts two types of indirect (“shadow”) costs on the bank …'s shareholders: first, it induces the bank to maintain higher liquid reserves in order to alleviate the additional default risk …

, policymakers, and bank managers for better decision making. …

-risk-based capital ratios and bank risk-taking. The findings also demonstrate that an increase in capital buffer ratios decreases the …

ratio on commercial bank risk-taking over the period from 2002 to 2019 using a two-step GMM method. The finding reveals that …

circumstances. The model, which measures additional bank capital required to compensate for fluctuating credit risk, is a novel …

We investigate the influence of the institutional environment on bank capital ratios. Using a sample of 149 banks …. Our findings contribute to the bank capital structure literature and have important policy implications for developing …