We analyze a variant of the Diamond-Dybvig (1983) model of banking in which savers can use a bank to invest in a risky … project operated by an entrepreneur. The savers can buy equity in the bank and save via deposits. The bank chooses to invest … in a safe asset or to fund the entrepreneur. The bank and the entrepreneur face limited liability and there is a …

2001 through 2011 and find the standard capital ratio to be a significantly better predictor of bank performance than the …

find neutral impact for developing countries. Moreover, our results hold when we apply different measures for bank risk …

This paper analyzes the effects of two regulatory mechanisms, namely a regulation of the structure of bank CEOs … incentive pay and sanctions for the CEOs of failed banks, on bank risk shifting. We extend a standard model of CEO compensation … by incorporating leverage and an investment decision. To the extent that bank depositors and creditors are even partially …

We examine the effectiveness of bank regulation in the light of creditor diversity. Our theory suggests a bank can …-capitalized bank might not eliminate financial fragility in the absence of creditor diversity, because it cannot utilize this matching … mechanism. Our simulation finds supporting evidence that capital regulation can improve a bank's solvency and eliminate …

We model dynamic bank capital structure under three optimally-designed regulatory regimes dealing with potential …

We investigate the effects of countercyclical prudential buffers on bank risk-taking. We exploit the introduction of …

a bank-level systemic risk indicator that can be decomposed into a bank's individual risk and its systemic linkage. To … proxy the strictness of a country's regulatory regime, we employ World Bank survey data …

causal effects of bank bailouts are considered …

risks. In this paper we show empirically that implicit guarantees lead to more leverage and to a lower quality of bank … analysis combines bank balance sheet information from 92 countries with Fitch Support Ratings and World Bank survey data on …