The new regulatory framework imposes an increase in capital requirements for banks. Although core capital (equity) is more expensive than other liabilities (debt), it strengthens banks' stability and improves its loss-absorbing capacity. In this paper, we investigate the link between...

This study provides estimation of public implicit guarantees over the period 1997 to 2012 using a rating-based model. The analysis focuses on a sample of 56 large listed European banks. It appears that the main element for determining the value of the public subsidy is the intrinsic strength of...

This study provides estimations of public implicit guarantees over the period 1997 to 2012 using a rating-based model. The investigation focuses on a sample of 45 large, listed European banks. It appears that the main element for determining the value of the public subsidy is the intrinsic...