not deductible. Theoretically, this unequal treatment gives a bank - as any other firm - an incentive to take on more debt … significantly increases bank capital ratios, driven by an increase in common equity. Additionally, the results illustrate that both … innovative policy tool for bank regulators …

In this study, we test the predictive power of several alternative measures of bank capital adequacy in identifying U ….S. bank failures during the recent crisis period. We find that an unconventional ratio — the non-performing asset coverage … ratios in at least five aspects: (i) it aligns capital and credit risks — the two primary risks of bank failures — in one …

inference and indicates that bank capital regulation which ensures banks to contribute to sustainable economic growth should … stability and capital market competition for equity capital, this paper proposes that sustainable bank capital regulation should … be in line with and be adjustable to significant changes in bank business model and the broad economy so that banks will …

recognizing greater risks and losses, can lead to solvency problems that look like liquidity (bank-run) crises. Regulatory …

Mercosur? The objective of this paper is to answer this question by analyzing changes in bank behavior after crises in the … literature - to post-crisis bank behavior. Using a panel dataset of commercial banks during the period 1990-2006, we analyze the … impact of crises on four sets of financial indicators of bank behavior - profitability, maturity preference, credit supply …

chapter reviews and synthesizes the theoretical and empirical literature on bank liquidity creation. The focus is on the … economics of bank liquidity creation, both in the traditional relationship banking context and in the shadow banking context …

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 use a unique database for the French banking sector between 2003 and 2011 combining confidential bank-level Bank …