€™ risk exposure. But trying to improve financial soundness in the midst of a downturn can do the oppositeâ …

to take on risk by reducing market discipline or by increasing charter value. We use an international sample of bank data … associated with more risk taking by banks, especially during the financial crisis (2009-10). We also find that restricting banks …

Credibility is the bedrock of any crisis stress test. The use of stress tests to manage systemic risk was introduced by …

In this paper, we provide an overview of the concerns surrounding the variations in the calculation of risk … actual and perceived problems with RWAs, and improve the use of risk-sensitive capital ratios. …

mindful of how undercapitalization can create incentives to take on excessive risk. This study proposes a novel framework for … capital regulation that addresses banks' incentives to take on excessive risk and leverage. The framework consists of a … design, this special account thus limits risk taking, but ensures that creditors' disciplining incentives are preserved. …