A growing number of observers have proposed using subordinated notes and debentures (SND) as a way of increasing market discipline on banks and banking organizations. Although policy proposals vary, all would mandate that banks subject to the policy must issue and maintain a minimum amount of...

We test three hypotheses regarding changes in supervisory "toughness" and their effects on bank lending. The data provide modest support for all three hypotheses that there was an increase in toughness during the credit crunch period (1989-1992), that there was a decline in toughness during the...

We propose a set of consistency conditions that frontier efficiency measures should meet to be most useful for regulatory analysis or other purposes. The efficiency estimates should be consistent in their efficiency levels, rankings, and identification of best and worst firms; consistent over...