This study develops a multi-period structural model to value bank subordinated debt (subdebt) under different … risks, bank characteristics and regulatory policies affect subdebt prices and yield spreads. It finds that the … have the opposite effects. Also, subdebt spreads are less sensitive to bank risk when PCA is imposed than when capital …

competitor banks for any given bank, and analyze the impact of this variable on banks’ risk-taking behavior, using a large sample … bank bail-outs on banks' risk-taking behavior. -- Government bail-out ; implicit and explicit government guarantees …

regulatory requirements. Our analytic characterization of the bank policy choices shows that imposing solely liquidity … requirements leads to lower bank losses in default at the cost of an increased likelihood of default. Combining liquidity … requirements with leverage requirements reduces drastically both the likelihood of default and the magnitude of bank losses in …

competitor banks for any given bank, and analyze the impact of this variable on banks' risk-taking behavior, using a large sample … increase the protected banks' risk-taking. These results have important implications for the effects of the recent wave of bank …

that arises in case of resolution or bankruptcy. This net benefit, which may be capitalized into the value of the bank … distress despite increasing encumbrance of the bank's balance sheet. The benefit is maximized when resolution is initiated …

competitor banks for any given bank, and analyze the impact of this variable on banks’ risk-taking behavior, using a large sample … bank bail-outs on banks’ risk-taking behavior …

We investigate the relationship between bank complexity and bank risk-taking using German banking data over the period …

-out guarantee. The reason is that the prospect of a bail-out induces the rotected bank to expand, thereby intensifying competition … in the deposit market and depressing other banks' margins. In contrast, the effects on the protected bank's risk taking …

This paper investigates how deposit insurance and capital adequacy affect bank risk for five developed and nine …

by this theory, we show that banks closely match the interest-rate sensitivities of their income and expenses, and that …