Esposito, Lorenzo; Mastromatteo, Giuseppe - 2023
change much of the banks’ behavior and incentives. In particular, banking regulation did not face the nexus profitability …-riskiness. Based on Minsky’s financial instability hypothesis, we discuss the literature on banks’ profitability and its relation to … the originate-to-distribute model. We also propose a different strategy for banking regulation, based on a profitability …