The determinants of default risk of banks in emerging economies have so far received inadequate attention in the … the economy. Public sector banks have shown significant performance in containing bad debts. Private banks have continued … banks, apart from other accepted determinants of profitability, asset size has no significant impact on profitability. …

We investigate liquidity shocks and shocks to fundamentals during financial crises at commercial banks, investment … banks, and hedge funds. Liquidity shock amplification models assume that widespread funding problems cause fire sales. We … find that most banks do not experience funding declines during crises. Banks that do face debt shortages circumvent fire …

Under Basel III rules, banks become subject to a liquidity coverage ratio (LCR) from 2015 onwards, to promote short …-term resilience. We investigate the effects of such liquidity regulation on bank liquid assets and liabilities. Results indicate co …-integration of liquid assets and liabilities, to maintain a minimum short-term liquidity buffer. Still, microprudential regulation …

RBC rules and related rules on bank liquidity. We find that nine of the 27 rules include RIAs. Five of the RIAs claim the …

A large literature at the intersection of economics and finance offers prescriptions for regulating banks to increase … financial stability. This literature abstracts from the discretion that accounting standards give banks over financial reporting …, creating a gap between the information assumed to be available to regulators in models of optimal regulation and the …

outcome of the interaction between market liquidity risk, solvency risk, and the funding structure of banks. To assess the …We offer a multi-period systemic risk assessment framework with which to assess recent liquidity and capital regulatory … requirement proposals in a holistic way. Following Morris and Shin (2009), we introduce funding liquidity risk as an endogenous …

We develop a dynamic model of banking to assess the effects of liquidity and leverage requirements on banks' insolvency … risk. In this model, banks face taxation, flotation costs of securities, and default costs and maximize shareholder value … regulatory requirements. Our analytic characterization of the bank policy choices shows that imposing solely liquidity …

lead to significant changes in the competitive environment should banks consider adding a granularity adjustment to the …