criticized new regulation on the ground that it would enhance the cost of funds for bank borrowers and deteriorate the bank … profitability. In this study, we examine the impact of capital requirements on the cost of financial intermediation and bank … generalized method of moments (GMM) estimator, we find robust evidence that higher bank regulatory capital ratios reduce the cost …

empirical support. We conclude that bank equity is not socially expensive, and that high leverage at the levels allowed, for …

We develop a model of the joint capital structure decisions of banks and their borrowers. Strikingly high bank leverage … emerges naturally from the interplay between two sets of forces. First, seniority and diversification reduce bank asset … and fragility. Deposit insurance and the expectation of government bailouts increase not only bank risk taking, but also …

likelihood to issue equity. In contrast to this view, for an international sample of bank Seasoned Equity Offerings (SEOs), we …

Internal Ratings-Based approach affects the bank loan pricing mechanism, by developing a multiperiod risk-adjusted pricing … provides an immediate support for bank managers in making a loan price-related decision …

This paper investigates bank portfolio composition under Basel II where the amount of required capital is determined by … bank's own risk assessment. We particularly show that in presence of asymmetric information between the bank and the …

adjustment model. Overall, consistent with the findings from the corporate finance literature, we find that bank capital … policy initiatives that aim to strengthen the bank capital regulation by introducing a minimum leverage ratio and by …