We examine banking regulation in a macroeconomic model of bank runs. We construct a general equilibrium model where …

regulatory requirements. Our analytic characterization of the bank policy choices shows that imposing solely liquidity … requirements leads to lower bank losses in default at the cost of an increased likelihood of default. Combining liquidity … requirements with leverage requirements reduces drastically both the likelihood of default and the magnitude of bank losses in …

This paper presents a continuous-time bank capital structure model in which the bank's assets are subject to both … diffusion and tail risk. The latter causes uninsured deposits to be risky, as the bank's assets can jump below the threshold at … the credit spread on deposits when the bank is unregulated and of the endogenous deposit insurance premium when the bank …

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 …

incentives, risk management models and procedures, conflicts of interest and bank strategies. Their perspectives are quite …

likelihood to issue equity. In contrast to this view, for an international sample of bank Seasoned Equity Offerings (SEOs), we …

; (4) a bank’s systemic importance/vulnerability depends on complex interaction between asset volume, leverage rate, and … contributes to more efficient and precise regulations. Moreover, we contribute a ranking framework to assess each bank’s systemic …

In attempting to promote bank stability, the Basel Committee on Banking Supervision (2006) provides a framework that … regarding the treatment of tail risk. -- Bank regulation ; bank stability ; Basel framework ; crisis ; tail risk …