An important question for bank regulatory policy is whether supervisory examinations of large commercial banking firms - institutions that are already actively followed by many investors and their private sector agents - produce useful information that is not already reflected in market prices....

U.S. banks hold significantly more equity capital than required by their regulators. We test competing hypotheses regarding the reasons for this ldquo;excessrdquo; capital, using an innovative partial adjustment approach that allows estimated BHC-specific capital targets and adjustment speeds to...

An important question for bank regulatory policy is whether supervisory examinations of large commercial banking firms - institutions that are already actively followed by many investors and their private sector agents - produce useful information that is not already reflected in market prices....