The paper evaluates the impact of a phased-in introduction of capital requirements on equity, risk-taking, and probability of default for a sample of European systemically important banks. Contrary to the case of a one-off introduction of capital requirements, this study does not fi nd evidence...

The paper evaluates the impact of a phased-in introduction of capital requirements on equity, risk-taking, and probability of default for a sample of European systemically important banks. Contrary to the case of a one-off introduction of capital requirements, this study does not find evidence...

The paper evaluates the impact of macroprudential capital regulation on bank capital, risk taking behaviour, and solvency. The identification relies on an exogenous policy change in bank-level capital requirements across systemically important banks in Europe. A one percentage point hike in...

Parallel zum Privatsektor versuchen auch die Aufsichtsbehörden, die Vergütungspraktiken in Banken zu reformieren. Bemerkenswert dabei ist die Bandbreite an teils stark voneinander abweichenden Reformansätzen, was vor allem dem Mangel an empirischen Erkenntnissen zur Wirkung von Bonuszahlungen...

This paper examines the quality of credit ratings assigned to banks in Europe and the United States by the three largest rating agencies over the past two decades. We interpret credit ratings as relative assessments of creditworthiness, and define a new ordinal metric of rating error based on...

Parallel zum Privatsektor versuchen auch die Aufsichtsbehörden, die Vergütungspraktiken in Banken zu reformieren. Bemerkenswert dabei ist die Bandbreite an teils stark voneinander abweichenden Reformansätzen, was vor allem dem Mangel an empirischen Erkenntnissen zur Wirkung von Bonuszahlungen...

We argue that risk sharing motivates the bank-wide structure of bonus pay. In the presence of financial frictions that make external financing costly, the optimal contract between shareholders and employees involves some degree of risk sharing whereby bonus pay partially absorbs earnings shocks....

We use payroll data on 1.2 million bank employee years in the Austrian, German, and Swiss banking sector to identify incentive pay in the critical banking segments of treasury/capital market management and investment banking for 66 banks. We document an economically significant correlation of...

This paper examines the quality of credit ratings assigned to banks in Europe and the United States by the three largest rating agencies over the past two decades. We interpret credit ratings as relative assessments of creditworthiness, and define a new ordinal metric of rating error based on...