analysis is relevant to the debate on bank capital regulation, and complements Admati et al. (2010). In that paper we argued … subsidies, the effects of leverage reduction on bank managers or shareholders do not represent a social cost. In fact, we show … to leverage reduction leads to social inefficiencies. The main beneficiaries from high leverage may be bank managers. The …

literature. This paper seeks to study the determinants of bank asset quality and profitability using panel data techniques and … contrary to the general perception. Similarly, with regard to rural bank branches, the results reveal that aversion to rural …

This paper investigates regulations for a bank that is covered by deposit insurance in a dynamic setting where … bankruptcy entails social costs. Regulatory policy operates through rules governing the bank's capital structure and asset … allocation that may be adjusted each period. Throughout, the regulator must take into account that the bank is better informed …

This paper analyzes the roles of corporate governance in bank defaults during the recent financial crisis of 2007 …-2010. Using a data sample of 249 default and 4,021 no default US commercial banks, we investigate the impact of bank ownership and … management structures on the probability of default. The results show that defaults are strongly influenced by a bank's ownership …

The paper examines a continuous-time delegated monitoring problem between a competitive investor and an impatient bank … monitoring a pool of long-term loans subject to Markovian "contagion." Moral hazard induces a foreclosure bias unless the bank is … compensated with the right incentive-compatible contract. Fees are paid when the bank's performance is on target and liquidation …

This paper analyzes the roles of corporate governance in bank defaults during the recent financial crisis. We … investigate the impacts of bank ownership and management structures on the probability of default of US commercial banks. Our … results suggest that defaults are strongly influenced by a bank's ownership structure: high shareholdings of lower …