There is a current controversy concerning the appropriate size of capital requirements for banks to mitigate systemic losses. We are the first in kind to quantify the size of capital buffers required to reduce systemic losses using loan loss provisions data for Australian banks from 2002 to 2014...

This study examines the impact of bank liquidity on bank risk taking. Using quarterly data for U.S. bank holding companies from 1986 to 2014 we find evidence to support that more liquid banks take more risk. This key result is robust for alternative bank risk and liquidity proxies, including...

This paper investigates the impact of policy interest rate news from the U.S. Federal Reserve (Fed) and the European Central Bank (ECB) on stock returns and volatilities of U.S. NYSE and German DAX listed commercial banks. We find that Fed news has the most influence on both U.S. and German...

Basel III has introduced new liquidity standards to directly enhance asset liquidity and funding stability within deposit taking institutions. We investigate the links between asset liquidity and funding stability as measured under the Basel III regulatory framework and US banks' deposit funding...