Conventional measures of bank solvency fail to account for the unique liquidity risks posed by deposits. Using public … market risk on bank solvency. We validate that economic capital is a more timely and accurate indicator of bank health than …

College) gave the SUERF 2015 Annual Lecture on Capital and Banks. The conference focused on core aspects of banking reform …

This paper examines the Leverage Ratio and Total Capital Ratio of global versus non-global banks in both the pre- and … period 1999-2015 and a random effects model is employed to examine whether global banks perform better or not compared to … their non-global counterparts. This study comes up with two important findings. First, global banks do not exhibit …

We check if the level of capital buffers influences the quality of bank diversification strategies. We use consolidated … diversification exerted non-monotonic impacts on bank robustness during and after the GFC. Capital buffers preserved the robustness of …

There is a current controversy concerning the appropriate size of capital requirements for banks to mitigate systemic … provisions data for Australian banks from 2002 to 2014 and annual public accounts from 1978 to 2014. We find that first, during … the stable times, banks' multi-year loan loss rates are positively related to past loss rates and lagged loan growth and …

government guarantees rather than from corporate governance failures within banks. The idea of the proposed regulation is to … regulator does not need to be able to properly measure the bank investment risk, which has been shown to be a difficult task …

In the emerging consensus view on reforming bank capital requirements, the need for increased regulatory capital and … to the ongoing debate concerning the proper composition of capital buffers, in which banks favor sub-ordinate debt over …, since the reliance on subordinated debt helps in putting a cap on loss given default of senior claims of failing banks …

This paper addresses the trade-off between additional loss-absorbing capacity and potentially higher bank risk …. Using a theoretical micro model, we show that a leverage ratio requirement can incentivise banks that are bound by it to … capital and therefore increased lossabsorbing capacity, thereby leading to more stable banks. These theoretical predictions …

We investigate the risk taking incentives of "stressed banks" - the banks that are subject to annual regulatory stress … tests in the U.S. since 2011. We document that stress tests effectively encourage prudent investment from stressed banks …. Our results highlight the importance of regulatory monitoring of banks' portfolios in parallel to setting more stringent …