The authors document leverage, capital and liquidity ratios of banks in Canada. These ratios are important indicators … compare leverage and capital ratios for banks in Canada and the United States in the period leading up to the recent crisis … of different types of risk with respect to a bank’s balance-sheet management. Particular attention is given to the …

. This supports a nuanced version of the Too- Big-To-Fail story, whereby participants continued to lend to riskier banks at … favorable rates, not because of explicit support to the riskier banks provided by governmental authorities, but rather due to … the collective self-interest of these banks. …

We employ a comprehensive data set and a variety of methods to provide evidence on the magnitude of large banks … Canadian banks. The banking sector in Canada provides a unique setting in which to examine market discipline along with the … prospects of proposed reforms, because Canada has no history of government bailouts. Our results suggest that large banks likely …

difficult to assess the contestability of a banking market. Recent work suggests that the number of banks and the degree of …

disciplining banks' risk choice. Comparisons are conducted between equity, subordinated debentures (SD), and uninsured deposits (UD …) as funding sources. The model, adapted from Repullo (2004), analyzes the effectiveness of regulatory capital when banks … although all three instruments can induce market discipline on banks, equity weakly dominates SD and UD (with SD weakly …

The author documents the use by Canadian banks of subordinated debt (SD) as a capital instrument. He reviews the … cross-section time-series sample of banks, into which controls for fixed effects, along with other non-default risk factors …, are incorporated. Results for domestic banks show that, whenever there exists a high degree of gross impaired non …