There is a large body of literature that concludes that—when confronted with increased
competition—banks rationally choose more risky portfolios. We argue that this literature has …

We assess the inter-temporal relationship between bank efficiency, capital and risk in a
sample of European commercial banks employing several definitions of efficiency, risk and …

This paper documents the relationships between bank size and measures of charter value
and insolvency risk in a sample of publicly traded banks in 21 industrialized countries for the …

We analyze regulatory capital requirements where the amount of required capital depends
on the level of risk reported by the banks. It is shown that if the supervisors have a limited …

We analyze the loan pricing implications of the reform of bank capital regulation known as
Basel II. We consider a perfectly competitive market for business loans where, as in the …

This paper extends the literature on bank capital structure by modeling capital structure as a
function of important public policy and bank regulatory characteristics of the home country …

The unfolding subprime crisis and the challenges facing central banks in using monetary
policy to resolve the possible credit crunch, highlight the importance of understanding the …

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 …

We study bank supervision by combining a theoretical model distinguishing supervision
from regulation and a novel dataset on work hours of Federal Reserve supervisors. We …

The stability of the banking sector is the foundation of steadiness of the entire financial
system as banks play a central role in the money creation process; in the payment system, in …