CoCo’s (contingent convertible capital) are designed to convert from debt to equity when banks need it most. Using a … on other banks in the system in the likely case of correlated asset returns, so bank runs elsewhere in the banking system …

restructuring provide banks with incentives to restructure bad loans and free up resources for new economic activity. Other … interventions lead banks to roll over bad loans, tying up resources in distressed firms. Our analysis suggests that zombie banks are …

This paper deals with the relation between excessive risk taking and capital structure in banks. Examining a quarterly … dataset of U.S. banks between 1993 and 2010, we find that equity is valued higher when more risky portfolios are chosen when … leverage is high, and that more risk taking has a negative impact on valuation of the debt of highly leveraged banks. We find …

We investigate actual capital chosen by banks in presence of capital minimum requirements and ex-post penalties for …

-fledged Islamic banks (IBs) are indeed more stable than conventional banking institutions (CBIs), and are better capitalized than … loss provisioning. Similar results obtain for Islamic windows of mixed banks compared with conventional windows. The … analysis suggests that the loss absorption capacity of Islamic banks leads to less risk taking and a more stable banking system. …

-fledged Islamic banks (IBs) are indeed more stable than conventional banking institutions (CBIs), and are better capitalized than … loss provisioning. Similar results obtain for Islamic windows of mixed banks compared with conventional windows. The … analysis suggests that the loss absorption capacity of Islamic banks leads to less risk taking and a more stable banking system. …