. This way, one bank's dividend payout policy affects the equity value and risk of default of other banks. When such negative …

in turn are other banks. This way, one bank's dividend payout policy aects the equity value and risk of default of otther …

between risk and uncertainty is implemented by applying the Gilboa-Schmeidler maxmin with multiple priors framework to lenders …

We study empirically the effect of focus (specialization) versus diversification on the return and the risk of banks … deterioration in bank monitoring quality at high levels of risk and a deterioration in bank monitoring quality upon lending … endogenously producing riskier loans for all banks in our sample; this effect being most powerful for high-risk banks. Sectoral …

-term oriented, with high implicit capital, and low risk (thanks to the law of large numbers). Trading is transactions …-based: scalable, short-term, capital constrained, and with the ability to generate risk from concentrated positions. When a bank …-ante. And a bank may use trading for risk-shifting. Financial development augments the scalability of trading, which initially …