within the well-known “Risk Triangle” is extinguished but that real production decisions are affected negatively as well. We … at risk for a prototypical power producer and illustrate which type of model is required to determine the size of the …

The paper studies risk mitigation associated with capital regulation, in a context when banks may choose tail risk … assets. We show that this undermines the traditional result that higher capital reduces excess risk-taking driven by limited … liability. When capital raising is costly, poorly capitalized banks may limit risk to avoid breaching the minimal capital ratio …

-term funding for banks and other financial institutions. It highlights the favorable regulatory risk-weights assigned to sovereign … removed, as they tend to increase the distortions in risk pricing and are likely to contribute to systemic risk, the …

This article studies the regulatory strategies to address the potential systemic risk of hedge funds operation in … systemic risk, the article focuses on one critical aspect of hedge fund regulation, namely the choice between direct regulation … systemic risk. This policy recommendation is further supported by the economic and organizational structure of hedge funds and …

regulation may be justified. This paper further studies the two-pronged approach to addressing risk spillovers in the Dodd …

of hedging on firm value and performance. We show that interest rate risk hedging is negatively related to firm value and … in terms of complexity or innovativeness that could justify such “imperfect” risk management behavior. We also find that …

The latest financial crisis has exposed substantial weaknesses in the bank risk models used by national regulators as … well as the Basel Accords. The study is aimed at presenting the evolution and critique of risk measures and risk models in … banking, with a special focus on the dynamically developing area of systemic risk measures. A discussion of the features of …