stylized facts about pre-crisis bank behavior, and suggest implications for the optimal design of capital regulation. …The paper studies risk mitigation associated with capital regulation, in a context when banks may choose tail risk …. A bank with higher capital has lesschance of breaching the ratio, so may actually take more risk. As a result, banks …

This paper discusses liquidity regulation when short-term funding enables credit growth but generates negative systemic … incentives for risk creation.When banks differ in credit opportunities, a Pigovian tax on short-term funding is efficient in … containing risk and preserving credit quality, while quantity-based fundingratios are distorsionary. Liquidity buffers are either …

.The theoretical literature on the institutional basis for financial development and the recent evidence suggests that unconstrained …

data complementing existing evidence that financial instability is highest when bank control is capturedby small lobbies. …. At the transition point there is a jumpin risk taking, as private banks do not internalize the social costs of bank …

planner may limit the scale of foreign inflows or credit volume. …