-dependent bank capital regulation (CR). Bank leverage choices are subject to the risk-return trade-off: high leverage increases … expected return on capital, but also increases return variance and bank failure risk. Financial frictions imply that bank … leverage choices are socially inefficient, providing scope for a welfare-enhancing CR that imposes a cap on bank leverage. The …

promoting bank safety and soundness. The Bank for International Settlements contends that market discipline imposes strong … potential losses from their risk exposures. Using 2007 and 2013 data on top-tier, publicly traded U.S. bank holding companies …

We present a novel way to examine macro-financial linkages by focusing on the real effects of bank supervisors … growth, the number of establishments, and increasing unemployment. These effects are related to contractions in bank lending …

This paper examines the impact of charter type, holding company structure, and measures of bank fragility on the … likelihood of a bank bailout or failure during the late 2000s financial crisis. The empirical results indicate that established … brokered deposits, and held a relatively large portfolio of real estate loans. In addition, bank failure was more likely for …

The global financial crisis underlined that sound and effective bank regulation is vital to financial stability … outbreak. The crisis reflected the failure of regulatory authorities to keep pace with financial innovation. Bank supervision … had been weak by any measure. Supervisors did not conduct regular onsite bank inspections or examinations of sufficient …

-step robust GMM estimator we show that restrictions on bank activities and more stringent capital standards weaken the capital … crunch effect, consistent with reduced risk taking and boosted bank charter values. Official supervision also reduces the … perspective. Weak regulations and supervision seem to increase the pro-cyclical effect of capital on bank lending …