Risk-shifting occurs when creditors or guarantors are exposed to loss without receiving adequate compensation. This paper seeks to measure and compare how well authorities in 56 countries controlled bank risk shifting during the 1990s. Although significant risk shifting occurs on average,...

This paper proposes a theoretically sound and easy-to-implement way to measure the systemic risk of financial institutions using publicly available accounting and stock market data. The measure models credit risk of banks as a put option on bank assets, a tradition that originated with Merton...

This paper tackles three tasks. It reviews the history of restrictions on interstate banking. It summarizes the provisions of the Interstate Banking and Branching Efficiency Act of 1994, underscoring the opt-in and opt-out lobbying pressure this act assigns to state legislatures. Finally, the...