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We examine the optimal size and composition of banks' total loss absorbing capacity (TLAC). Optimal size is driven by the trade-off between providing liquidity services through deposits and minimizing deadweight default costs. Optimal composition (equity vs. bail-in debt) is driven by the...
Persistent link: https://www.econbiz.de/10011978192
We investigate the relationship between bank complexity and bank risk-taking using German banking data over the period …
Persistent link: https://www.econbiz.de/10012510180
must be carefully analysed before endorsing the general statement that “bank equity is not expensive”. In fact, specific … argue that market prices (notably price-to-book ratios) should play a primary role in bank supervision. To support our …-shifting phenomena on banks' assets, notably when price-to-book values are below one, may increase the overall risk of the bank, and …
Persistent link: https://www.econbiz.de/10013089413
This study evaluates the effect of the Capital Purchase Program during the 2008-2009 financial crisis on the cost of equity of 170 publicly listed banks in the United States that received funding. We document robust evidence that the liquidity provided by the government bailout reduced the cost...
Persistent link: https://www.econbiz.de/10012841209
We examine the effects of geographic deregulation on banks' cost of equity (COE) using changes in interstate bank …
Persistent link: https://www.econbiz.de/10012850786
regulation than for other banks and firms. Over a longer twenty-year horizon, we find that changes in the systematic risk of bank …
Persistent link: https://www.econbiz.de/10012852028
, a bank is able to reduce the cost of debt by splitting it into a junior and a senior tranche, sold to institutional and …
Persistent link: https://www.econbiz.de/10011776152
the public, long-term systemic risk among banks tends to increase. From the dynamic perspective, bank penalties represent … long-term. In this respect, bank penalties resemble still waters that run deep. In contrast, a settlement with regulatory …
Persistent link: https://www.econbiz.de/10012697108
Bank capital requirements are based on a mix of market values and book values. We investigate the effects of a policy … banking organizations. Our analysis is based on security-level data on individual bank portfolios matched to bond …
Persistent link: https://www.econbiz.de/10011868435
In this paper, we analyze the impact of loan growth and business model on bank risk in 15 EU countries. In contrast to …, decreases with bank size possibly because large banks are more active in volatile trading and off-balance sheet activities such …
Persistent link: https://www.econbiz.de/10012988807