The interest in the application of market discipline to regulate the financial industry has
boomed recently due to the proposed New Capital Accord. This paper reviews the potential …

The question of whether private investors can discriminate between the risk taken by banks
is empirically investigated by testing the risk sensitivity of European banks' subordinated …

Although “market discipline” has become a more popular notion among academics,
bankers, and supervisors, the exact meaning of this term remains imprecise. The phrase is …

The last thirty years have seen an impressive number of banking and financial crises all over
the world. In an interesting study, Caprio and Klingebiel (1997) identify 112 systemic …

The on-going reform of the Basel Accord relies on three “pillars”: a new capital adequacy
requirement, supervisory review and market discipline. This article develops a simple …

This second edition of The Industrial Organization explores the study of the structure of
individual banks, banking markets, and their interactions. The book has the same two key …

The question of whether banks are relatively more opaque than non-banking firms is
empirically investigated by analyzing the disagreement between rating agencies (split …

The classical Bagehot conception of a Lender of Last Resort (LOLR) that lends to illiquid
banks has been criticized on two grounds: On the one hand, the distinction between …

Value at Risk and Bank Capital Management offers a unique combination of concise, expert
academic analysis of the latest technical VaR measures and their applications, and the …

The present paper demonstrates the ambiguous impact of subordinated debt on the risk-
taking incentives of banks. It is shown that in comparison with full deposit insurance …