This paper shows that banks that rely heavily on short-term funding engage less in maturity transformation in an attempt to decrease their exposure to rollover risk. These banks shorten both the maturity of their portfolio of loans as well as the maturity of newly issued loans. We find that the...

This paper investigates the incentives for banks to bias their internally generated risk estimates. We are able to estimate bank biases at the credit level by comparing bank-generated risk estimates within loan syndicates. The biases are positively correlated with measures of regulatory capital,...

This paper investigates the incentives for banks to bias their internally generated risk estimates. We are able to estimate bank biases at the credit-level by comparing bank generated risk estimates within loan syndicates. The biases are positively correlated with measures of regulatory capital,...