contributes to the current debate on the optimal scope of bank activities, and highlights novel channels through which …

Bank leverage ratios have made an impressive and largely unopposed return; they are mostly used alongside risk …-weighted capital requirements. The reasons for this return are manifold, and they are not limited to the fact that bank equity levels … straightforward real estate loans. Bank leverage ratios are primarily seen as a microprudential measure that intends to increase bank …

bank when its partner bank fails. We investigate how capital constraints affect the choice of the healthy bank to takeover … or liquidate the exposure held jointly with the failing bank, and how the bank's ex ante optimal capital holding and … stock rather than preferred equity injection dilutes existing shareholder interests and gives the bank a greater incentive …

2007-2009. The fear is that if a big bank gets into trouble, its problems will infect other financial institutions and … there are huge complexities at almost every level. What is “big?” How big is too big? What is a “bank?” What kinds of risk …-taking are appropriate for a bank – and why? What do we know about the costs and benefits of different strategies? This paper …