bank bail-outs on banks' risk-taking behavior. -- Government bail-out ; implicit and explicit government guarantees …This paper empirically investigates the effect of government bail-out policies on banks outside the safety net. We … construct a measure of bail-out perceptions by using rating information. From there, we construct the market shares of insured …

This paper empirically investigates the effect of government bail-out policies on banks outside the safety net. We … construct a measure of bail-out perceptions by using rating information. From there, we construct the market shares of insured … competitor banks for any given bank, and analyze the impact of this variable on banks’ risk-taking behavior, using a large sample …

characteristics to those rescued (peers), especially if the rescue packages do not contain restrictions on bank activities …. Specifically, after a bank is rescued, peers show greater Non-Performing Loans ratios and lower margins. We also investigate the … public rescue packages in smoothing peers’ risk-taking incentives and avoiding distortions in the competition …

implementations of the funds concentration effect and the corresponding discriminatory bailout scheme: “random bailout“ and “bailout …

the resulting drop in bank charter values translated into higher risk-taking at German savings banks. -- Public bail-out … guarantees ; savings banks ; Landesbanken ; market discipline ; bank risk-taking ; banking networks …

guarantee. The reason is that the prospect of a bail-out induces the rotected bank to expand, thereby intensifying competition …The explicit or implicit protection of banks through government bail-out policies is a universal phenomenon. We analyze … main result is that the bail-out policy unambiguously leads to higher risk-taking at those banks that do not enjoy a bail-out …

The paper tests the effect of competition on bank risk-taking for a sample of up to 800 banks worldwide over the period … 1995-2010. Following the theoretical literature on bank competition and risk more closely than previous empirical research …, we measure competition at the bank level and separate the effects of competition in deposit and loan markets. We also …

extreme risks. But what if the bailout were harsh?The loan would have a penalty rate and the manager would have to sacrifice …—unless failure is imminent. In that case, the managerincreases risk immensely to profit from no further loss, which makes the bailout … morelikely. The paper informs which terms can be successful in bailout policy design …

This paper documents large cross-country variation in the relationship between bank competition and bank stability and … explores market, regulatory and institutional features that can explain this variation. We show that an increase in competition …