Employing a two-level-game framework, this paper examines Japanese participation in the negotiation process leading up to the 1988 Basle Capital Accord. The argument made here is that the Japanese Ministry of Finance (MoF) simultaneously pursued different international and domestic goals;...

We find evidence of a bank lending channel for the euro area operating via bank risk.Financial innovation and the new ways to transfer credit risk have tended to diminishthe informational content of standard bank balance-sheet indicators. We show thatbank risk conditions, as perceived by...

[...]This paper aims to ascertain the quality (that is, thepredictive power and prediction errors) of two marketindicators: the distance to default and the subordinated debtspread. Previous work has established that banks’ marketprices reflect contemporaneous information about bank riskin the...