standard credit portfolio analysis in that we simulate actual bank capital and minimum capital requirements simultaneously …. Actual bank capital (absent mark-to-market accounting) is driven by bank income and default losses, whereas capital … capital buffers, given bank management’s specified confidence level for capital adequacy. We provide a tentative calibration …

We consider the impact of mandatory information disclosure on bank safety in a spatial model of banking competition in … which a bank’s probability of success depends on the quality of its risk measurement and management systems. Under Basel II …

Recently, banking literature has had a quest for appropriate pricing of bank loans under the new Basel II rules and has … price bank’s corporate loans, aiming at making bank managers aware of the creation/destruction of shareholder value. We show …

of Basel II on the efficiency of bank lending. We consider competitive credit markets where entrepreneurs may apply for … the cyclicality of bank lending over the business cycle. …

bank suffices for unexpected losses with a 95%-99% probability. This translates into an expected bank failure rate as high … as once in twenty years. Even if the bank's interest income is incorporated into our model, the expected failure rate is …