Today’s regulatory rules, especially the easily-manipulated measures of regulatory capital, have led to costly bank … failures. We design a robust regulatory system such that (i) bank losses are credibly borne by the private sector (ii …) systemically important institutions cannot collapse suddenly; (iii) bank investment is counter-cyclical; and (iv) regulatory …

creating counter-cyclical incentives for banks to raise capital, and so encourage bank lending in bad times. They avoid the …

a model in which the venture capitalist can evaluate the entrepreneur’s project more accurately than the bank but can … collateral, high growth, high risk, and high profitability. The model also suggests that tighter protection of intellectual …

foreigners. We use a bank-level panel data set spanning all British and foreign banks providing loans within the United Kingdom …," domestic (British) loans of a bank expressed as a fraction of its total loan activity. We also study effective short …

Recent empirical work suggests a strong connection between the incentives money managers are offered and their risk … not only effort exertion but also risk taking behavior. The moral hazard problem with risk taking involves an incentive …-compatibility constraint on risk, which we characterize. We distinguish between one period and several periods. In the former case, under mild …

choice of performance measures and incentives depends on the agent’s knowledge, environmental risk, technological uncertainty …

Central and Eastern Europe. The theoretical section establishes a link between a risk-averse investor’s amount of information … faces less risk; therefore, the investor’s risk premium falls and the investor’s bid rises. This link generates four …

In this article, we develop and estimate an econometric panel data model to capture the common dynamics in dollar risk … premia in various forward foreign exchange rates. The common component in the dollar risk premia is highly significant and …-related common component. Our evidence also suggests that the three different foreign currencies’ dollar risk premia ‘respond’ to the …