We investigate whether banks in more heavily regulated markets are more likely to suffer from capital shortfall and thus contribute more to systemic (in)stability. Our cross-country empirical findings show that bank activity restriction, initial capital stringency and prompt corrective action...

We study the relation between bank regulation stringency and announcement effects of seasoned equity offerings across 21 countries. Under a low to moderate bank regulation environment, the market reacts more positively to the bank SEO announcements for an increase in the level of bank...