We develop a model of banking industry dynamics to study the quantitative impact of capital requirements on equilibrium … where big banks with market power interact with small, competitive fringe banks. Banks face idiosyncratic funding shocks in … out of endogenous entry and exit, as well as banks' buffer stock of net worth. We show the model predictions are …

an externality in that it improves the stability of banking systems by increasing competition and forcing incumbent banks … 1930s to assess the effects of the expansion of large-scale, branch-banking networks on competition and the stability of … banking systems. Using a new database of individual bank balance sheets, income statements, and branch establishment, we …

We observe less efficient capital allocation in countries whose banking systems are more thoroughly controlled by … tycoons or families. The magnitude of this effect is similar to that of state control over banking. Unlike state control …

classification, about 3% of banks receiving better or worse CAMEL ratings, and bank lending being changed by 1% or less of assets …

Banks are in the business of taking calculated risks. Expanding the geographic footprint of an organization's profit … banks in individual EU countries help to explain the nature of cross-border merger activity. If they wish to protect …

We examine whether examiners were informed and contributed to the health of the banking sector. Information included …

that: (i) changes in capital requirements affect loan supply by regulated banks, and (ii) unregulated substitute sources of … response to tighter capital requirements. But unregulated banks (resident foreign branches) increase lending in response to … tighter capital requirements on a relevant reference group of regulated banks. This "leakage" is substantial, amounting to …

This paper models and estimates ex ante safety-net benefits at a sample of large banks in US and Europe during 2003 …-2008. Our results suggest that difficult-to-fail and unwind (DFU) banks enjoyed substantially higher ex ante benefits than other … information systems on measuring volatility as well as capital …

countries. We find that firms in countries with strong official supervisory agencies that directly monitor banks tend to face … supervisory agency that is independent of the government and banks mitigates the adverse consequences of powerful supervision …. Finally, we find that bank supervisory agencies that force accurate information disclosure by banks and enhance private …

bank debt as their prime source of financing now rely more heavily on the public capital markets. This trend was … facilitated by the substantial deregulation of the Japanese capital markets. In an earlier paper (Moshi, Kashyap, and Scharfstein … problems in the capital market. This paper tracks the investment behavior of firms that have recently weakened their bank ties …