and the banks' failure probability. In the model, banks adopt the Value-at-Risk rule to make the capital structure … decisions and the risk of contagion is neglected. The paper finds that interconnectedness may either increase or decrease the … interconnectedness on the banks' failure probability can be alleviated if bank capital regulation is properly designed. This paper …

We survey 149 leading academic researchers on bank capital regulation. The median (average) respondent prefers a 10 …% (15%) minimum non-risk-weighted equity-to-assets ratio, which is considerably higher than the current requirement. North … strongly an expert believes that higher capital requirements would increase the cost of bank lending. …

-destroying actions to benefit themselves, but may also encourage banks to lower asset risk. It shows that subdebt regulation and bank … disciplining banks. Under our proposal, investors buy the subdebt of a bank only if they receive favourable information about the … bank, and the bank is subject to a regulatory examination if it fails to issue subdebt. By forcing banks to be examined …

We investigate the effects of credit ratings-contingent financial regulation on foreign bank lending behavior. We … examine the sensitivity of international bank flows to debtor countries' sovereign credit rating changes before and after the … implementation of the Basel 2 risk-based capital regulatory rules. We study the quarterly bilateral flows from G-10 creditor banking …

​We investigate the effects of credit ratings-contingent financial regulation on foreign bank lending behavior. We … examine the sensitivity of international bank flows to debtor countries' sovereign credit rating changes before and after the … implementation of the Basel 2 risk-based capital regulatory rules. We study the quarterly bilateral flows from G-10 creditor banking …