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 …

In this paper, we analyze the risk taking behavior of banks in emerging economies, in a context of international bank …

the LRR is no longer the binding capital constraint on them. If the LRR is lower than the average bank's IRB requirement …

the average bank. The authors show similar effects on net charge-offs and for U.S. banks only …

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 …

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