This paper presents evidence that banks react to regulation in a forward-looking manner. A case study documents a …. Based on the initial information released on Basel II, banks loosened their credit policies towards households. The changes …

We study the relationship between banks’ size and risk-taking in the context of supranational banking supervision …. Consistently with theoretical work on banking unions and in contrast to analyses emphasising incentives underpinned by the too …-big-to-fail effect, we find an inverse relationship between banks’ size and non-performing loan growth for a sample of European banks …

I add a moral hazard problem between banks and depositors as in Gertler and Karadi (2009) to a DSGE model with a costly … state verification problem between entrepreneurs and banks as in Bernanke et al. (1999) (BGG). This modification amplifies …

equity. These findings are robust across financial subsectors. We then build a general equilibrium model with banks subject … to endogenous leverage constraints, and assess its ability to replicate the facts. In the model, banks borrow in the form …

consolidation. To this aim, we employ a very large data set of individual banks' balance sheets, combined with a newly compiled data … set on fiscal consolidations. We find that standard capital adequacy ratios such as the Tier-1 ratio tend to improve …, the banks' demand for government securities should increases relative to other assets …

We find that the increased use of securitisation activity in the banking sector prior to the 2007-2009 crisis augmented … correlated with higher levels of realised risk) during the crisis. In contrast, higher levels of capital did not buffer the … warranted to account for the stability implications of financial innovation and capital regulation …

The paper develops an early-warning model for predicting vulnerabilities leading to distress in European banks using … are that complementing bank specific vulnerabilities with indicators for macro-financial imbalances and banking sector …

increase in the size of the banking system relative to equity and private bond markets is associated with more systemic risk … amplification mechanism, by which banks overextend and misallocate credit when asset prices rise, and ration it when they drop. The … towards banks, while simultaneously supporting the development of securities markets …

evidence that supervisory scrutiny associated to stress testing has a disciplining effect on bank risk. We ftnd that banks that … participated in the 2016 EU-wide stress test subsequently reduced their credit risk relative to banks that were not part of this … interactions between banks and supervisors during the stress test, we find that the disciplining effect is stronger for banks …