We propose a dynamic bank theory with a delayed loss recognition mechanism and a regulatory capital constraint at its … nor market leverage constraints are binding for most banks; (4) bank leverage and Tobin’s Q are mean reverting but … core. The estimated model matches four facts about banks’ Tobin’s Q that summarize bank leverage dynamics. (1) Book and …

How does uncertainty affect the costs of raising finance in the bond market and via bank loans? Empirically, this paper … finds that heightened uncertainty is accompanied by an increase in corporate bond yields and a decrease in bank lending … for banks. To reduce uncertainty, banks acquire additional costly information about borrowers. More information increases …

. There are two main results: First, if all banks have enough liquidity so that they can honor their short-term obligations, a … banks, a financial transactions tax contributes to financial distress and undoes other policy measures that are used to …

, the equilibrium loan rate spread increases, which raises bank profitability and the market-to-book value of bank capital …. Hence, banks build up larger capital buffers which (i) lowers the public losses in case of a systemic crisis and (ii … model’s dynamic implications in a panel VAR estimation, which suggests that bank lending has even increased in the long …

This paper investigates how multinational banks use internal debt to shift profits to low-taxed affiliates. Using … regulatory data on multinational banks headquartered in Germany, we show that banks use this tax avoidance channel more …

the public, long-term systemic risk among banks tends to increase. From the dynamic perspective, bank penalties represent …We analyze link between mortgage-related regulatory penalties levied on banks and the level of systemic risk in the U … long-term. In this respect, bank penalties resemble still waters that run deep. In contrast, a settlement with regulatory …

European banks have been criticized for holding excessive domestic government debt during the recent Eurozone crisis …, which may have intensified the diabolic loop between sovereign and bank credit risks. By using a novel bank-level dataset … debt from foreign to domestic banks. In contrast to the recent literature focusing only on sovereign debt, I show that the …

equilibrium when banks have monopoly power, justifying a Pigouvian tax in this case. …

question, we identify the compositional changes in banks' supply of credit using the variation in their holdings of residential …