The principal–agent problem between the regulator, regulated banks, and taxpayers is critical to the viability of the financial system's safety net. There exists the danger that the regulator will collude with regulated banks to pursue their benefits at the expense of taxpayers, thereby...

This study investigates the determinants and outcomes of raising capital ratios upon the introduction of Basel II and III regulations. The evidence indicates that a bank is more likely to raise its capital base as its capital ratio is lowered. Although equity issuing is rarely used to raise the...

When the Japanese economy experienced a serious financial crisis in the late 1990s, the government attempted to promptly resolve this crisis by injecting public funds into bank capital, requiring these banks to compose and implement a rehabilitation plan. This paper empirically investigates...