arbitrage. I develop a framework to study bank regulation with strategic selection of risk models. A bank supervisor can …

Federal Reserve uses confidential models to evaluate bank-specific outcomes for bank-specific portfolios in shared stress … vulnerable to implicit misdirection of legitimate information to infer bank identity. We compare various notions of regression …, we argue for estimating and then discarding centered bank fixed effects as preferable to simply ignoring differences …

since the financial crisis of 2007-08 to address weaknesses in bank risk culture. The paper suggests that shortcomings in … risk culture — particularly as understood through the lens of human agency theory — in large financial institutions are the …

This paper investigates whether monitoring by bank lenders affects CEO incentives of borrowing firms. We find that an … increase in bank monitoring incentives significantly reduce the sensitivity of CEO wealth to stock return volatility (Vega …). The results are more profound when bank lenders are more powerful and reputable and have a prior lending relationship with …

a decrease in bank equity risk. We show theoretically, that keeping less capital in excess of the minimum capital … capitalization is a significant determinant of equity risk, and can explain why bank equity risk has not become lower after the Great …, reduced the cost of bank debt …

Recent regulations of risk governance call for more outsiders on bank boards. We study how these affect bank risk ….S. bank holding companies (BHC) from 2000 to 2019. We document that outsiders improve risk governance (decrease risk taking …

risk management. This infrastructure should identify, measure, monitor and control the risks that the bank is exposed to …