How do near-zero interest rates affect bank competition, risk taking and regulation? I study these questions in a … insurance may induce excessive risk taking. The zero lower bound on deposit rates (ZLB) distorts bank competition and boosts …

public disclosure of stress test results, raise funding by promising investors a repayment. We show that competition forces … of bank failure is sufficiently large, the surplus as well. Our results in overall highlight the need to take into …