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2001 through 2011 and find the standard capital ratio to be a significantly better predictor of bank performance than the …
Persistent link: https://www.econbiz.de/10012974653
of bank relationships and their banks' participation in government capital support programs. We find that government … pronounced for riskier and bank-dependent firms and those that borrow from banks that are less capitalized and smaller. Our study …
Persistent link: https://www.econbiz.de/10012975392
-prone securities from the financial system. By contrast, current regulation guarantees run-prone bank liabilities and instead tries to … regulate bank assets and their values. I survey how a much simpler, rule-based, liability regulation could eliminate runs and …
Persistent link: https://www.econbiz.de/10013006535
We investigate the effects of countercyclical prudential buffers on bank risk-taking. We exploit the introduction of …
Persistent link: https://www.econbiz.de/10012857307
Persistent link: https://www.econbiz.de/10013053461
This year, 2015, marks the six-year anniversary of US regulatory stress testing. We observe three key trends: 1) Increasingly aggressive capital management: Banks initially responded to CCAR by maintaining wide capital cushions vs. regulatory minimums. However, as CCAR processes stabilize and...
Persistent link: https://www.econbiz.de/10013018550
corporate governance and regulations on bank risk-taking behaviour. We found sufficient evidence that corporate governance … mechanism has strong effect on the level of risk taken by bank: bank with large owner(s) is associated with higher risk …-taking, while board size is found to be negatively related to bank risk level, indicating that the bigger the size of the board, the …
Persistent link: https://www.econbiz.de/10013026365
Traditional capital structure theory predicts that reducing banks' leverage reduces the risk and cost of equity but does not change the weighted average cost of capital, and thus the rates for borrowers. We confirm that the equity of better-capitalized banks has lower beta and idiosyncratic...
Persistent link: https://www.econbiz.de/10013026425
This article evaluates whether US large bank operational risk capital requirements are forward-looking, sensitive to …
Persistent link: https://www.econbiz.de/10012922128
The aim of this paper is to briefly present and assess the institutional framework governing the (and some main legal aspects related to the) European Banking Union (EBU), as in force, and the proposals made or suggested in order to enhance it. The paper is structured in three (3) Sections: (1)...
Persistent link: https://www.econbiz.de/10012931350