Authority, OLA) for different types of banks, we are able to simulate a quasi-natural experiment using a difference …-in-difference framework. We find that banks that are more affected by the introduction of the OLA (1) significantly decrease their overall … effectiveness of the regime change. This effect, however, does (3) not hold for the largest and most systemically important banks …

. Using a theoretical micro model, we show that a leverage ratio requirement can incentivise banks that are bound by it to … capital and therefore increased lossabsorbing capacity, thereby leading to more stable banks. These theoretical predictions … are tested and confirmed in an empirical analysis on a large sample of EU banks. Our baseline empirical model suggests …

probability of default for a sample of European systemically important banks. Contrary to the case of a one-off introduction of … gambling for resurrection, the risk-taking is driven by large and less profitable banks. The net impact on bank probabilities …

identify the effect of higher capital requirements by comparing the change in the outcome for banks just above and below the … discontinuity and on a difference-in-differences matching design. We find that, when parent banks are constrained with higher … effect by reducing banks' risk-taking while having a (temporary) adverse impact on the real economy through a decrease in …

I propose a dynamic general equilibrium model in which strategic interactions between banks and depositors may lead to … endogenous bank fragility and slow recovery from crises. When banks' investment decisions are not contractible, depositors form … complementarities and possibly multiple equilibria: in response to an increase in funding costs, banks may optimally choose to pursue …

This paper investigates whether European banks have capital targets and how deviations from the target impact their … equity composition and activity mix. Using quarterly data for a sample of large European banks between 2004 and 2011, we show … that there are notable asymmetries in banks' reactions to deviations from optimal capital levels. Banks prefer to reshuffle …

Systemically Important Banks (G-SIBs) on bank lending behaviour. Using a difference-in-differences estimation strategy, we find no … loan-specific risk factors for the affected banks. Moreover, we detect a significant decline in the pricing gap between … interest rates charged by G-SIBs and other banks, which we interpret as indirect evidence for a reduction in funding cost …

level for the banks that have been subject of the 2018 EBA stress tests. Therefore, we perform a holistic review of the …

This paper illustrates that systemically important banks reduce a range of activities at year- end, leading to lower … additional capital requirements in the form of G-SIB buffers. The effects are stronger for banks with higher incentives to reduce … the indicators, and for banks with balance sheet structures that can more easily be adjusted. The observed reduction in …

This paper investigates whether European banks have capital targets and how deviations from the target impact their … equity composition and activity mix. Using quarterly data for a sample of large European banks between 2004 and 2011, we show … that there are notable asymmetries in banks' reactions to deviations from optimal capital levels. Banks prefer to reshuffle …