, however, the bank can readjust the level of risk after the deposit rate is contracted, market discipline leads to an increase …

traditional Chinese commercial banks. According to this model, we proposed two hypotheses, namely, the regulatory arbitrage and … that regulatory arbitrage was the main driver of WMPs' rapid expansion. The greater the pressure from regulation was, the … strict or loose, the effect of regulatory arbitrage on marginal risk-taking behavior became reinforced or reduced …

-risk premia borne by bank subordinated debtholders. This paper examines the "market discipline" of OBS activities by employing a … prices of subordinated debt reflect the risk of default is to regress the yield spread against accounting measures of bank … risk. This approach is inadequate because yield spreads are neither linear nor monotonic functions of bank risk. Moreover …