, and regulators around bank insolvency may corrupt banks' credit allocation and monitoring decisions, leading to suboptimal … concerns usually inhering research on real economic implications of bank regulation. We find a comparably stronger … significant effect on individual firm growth - particularly for firms that are structurally more dependent on bank financing. Our …

This study develops a multi-period structural model to value bank subordinated debt (subdebt) under different … risks, bank characteristics and regulatory policies affect subdebt prices and yield spreads. It finds that the … have the opposite effects. Also, subdebt spreads are less sensitive to bank risk when PCA is imposed than when capital …

This paper examines the negative externalities that may occur when a large bank fails, describes the nature of those … directed first at closing institutions promptly, reforming bankruptcy statutes to admit special procedures for handling bank …