large amount of aggregate tail risk is missing from the price of financial sector crash insurance during the financial …

capital once stress-test losses are taken into account. In particular, the continued reliance on regulatory risk weights in … their risk assessments and outcomes to those from a simple methodology that relies on publicly available market data and … market data; (iii) This discrepancy arises due to the reliance on regulatory risk weights in determining required levels of …

stress-test losses are taken into account. In particular, the continued reliance on regulatory risk weights in stress tests … their risk assessments and outcomes to those from a simple methodology that relies on publicly available market data and …) This discrepancy arises due to the reliance on regulatory risk weights in determining required levels of capital once …

This paper analyses the impact of public disclosure of banks’ risk exposure on banks’ risk taking incentives and its … their loan portfolio, public disclosure reduces the probability of banking crises. When asset risk is driven largely by … between asset risk and the deposit rate demanded by informed depositors. …

This paper studies the impact of competition on the determination of interest rates, and on banks’ risk taking … lower entry costs foster competition in deposit rates and reduce banks’ incentives to limit risk exposure. While higher … insurance coverage amplifies this effect, two alternative arrangements (risk based contributions to the deposit insurance fund …

The paper studies risk mitigation associated with capital regulation, in a context where banks may choose tail risk … assets. We show that this undermines the traditional result that higher capital reduces excess risk-taking driven by limited … liability. Moreover, higher capital may have an unintended e¤ect of enabling banks to take more tail risk without the fear of …

assets to attain a good risk-adjusted rate of return without prejudice to the first two core functions. I conclude that the … policies, and by eliminating the large unnecessary currency risk in the Riksbank’s balance sheet. …