. Using a theoretical micro model, we show that a leverage ratio requirement can incentivise banks that are bound by it to … that a leverage ratio requirement would lead to a significant decline in the distress probability of highly leveraged banks. …-taking associated with the introduction of the Basel III Leverage Ratio. This is addressed in both a theoretical and empirical setting …

endogenous bank fragility and slow recovery from crises. When banks' investment decisions are not contractible, depositors form …I propose a dynamic general equilibrium model in which strategic interactions between banks and depositors may lead to … complementarities and possibly multiple equilibria: in response to an increase in funding costs, banks may optimally choose to pursue …

probability of default for a sample of European systemically important banks. Contrary to the case of a one-off introduction of … adjustment to lower leverage via an increase in equity thereby improving resilience and loss absorption capacity. The higher … gambling for resurrection, the risk-taking is driven by large and less profitable banks. The net impact on bank probabilities …

identify the effect of higher capital requirements by comparing the change in the outcome for banks just above and below the … discontinuity and on a difference-in-differences matching design. We find that, when parent banks are constrained with higher … effect by reducing banks' risk-taking while having a (temporary) adverse impact on the real economy through a decrease in …

Authority, OLA) for different types of banks, we are able to simulate a quasi-natural experiment using a difference …-in-difference framework. We find that banks that are more affected by the introduction of the OLA (1) significantly decrease their overall … effectiveness of the regime change. This effect, however, does (3) not hold for the largest and most systemically important banks …

Why should monetary policy "lean against the wind"? Can’t bank regulation perform its task alone? We model banks that … choose both asset volatility and leverage, and identify how monetary policy transmits to bank risk. Subsequently, we …

on banks’ internal ratings on loans to businesses over the period 1997 to 2011 from the Federal Reserve’s survey of terms … of business lending. We find that ex-ante risk taking by banks (measured by the risk rating of new loans) is negatively … with the nationwide business cycle, and less pronounced for banks with relatively low capital or during periods of …