, we study the implications of these two rules on bank capital adjustments. We show that the mix of the two-capital rules … can be viewed as a “hockey stick” shape single leverage ratio with limits equal to the value of a call option on the 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 …

We study how optimal bank capital and bond risk are influenced by deposit insurance, implicit guarantees, depositor … preference, asset encumbrance, and bail-in resolution frameworks. We find that these features of bank financing change the … optimal amount of bank capital. The net effect on bond debt risk and valuation is small, while the effects on shareholder …

We study the impact of China's 2013 implementation of Basel III on bank risk-taking and its responses to monetary … policy shocks using confidential loan-level data from a large Chinese bank. Guided by theory, we use a difference …-in-difference identification, exploiting cross-sectional differences in lending behaviors between highrisk and low-risk bank branches before and …

This study explores whether and how bank characteristics affect general risk-taking and tail risk of Too …

comprehensive sample that combines an original set of bank-specific bailout events with balance sheets of key affected and non …

Regulatory bank levies set incentives for banks to reduce leverage. At the same time, corporate income taxation makes … funding through debt more attractive. In this paper, we explore how regulatory levies affect bank capital structure, depending … on corporate income taxation. Based on bank balance sheet data from 2006 to 2014 for a panel of EU-banks, our analysis …

international subsidiary locations and risk of U.S. bank holding companies (BHCs). We find that U.S. BHCs are more likely to operate …