to liquidity assistance as a solution to forbearance. Faced with a bank that chooses capital and liquidity, the … credible, while always bailing out causes moral hazard. In equilibrium, the bank chooses above minimum capital and liquidity … is higher for a regulator more concerned about bank failure, and when the bailout penalty for the bank is higher; this …

on the aggregate risk model. The aggregate risk is the basis for defi ning a bank's economic capital, and is used in …Risk management for banks involves risk measurement and risk control at the individual risk level, including market … risk for trading books, credit risk for trading and banking books, operational risks and aggregate risk management. In many …