Using loan‐level data from Germany, we investigate how the introduction of model‐based
capital regulation affected banks' ability to absorb shocks. The objective of this regulation …

This is a survey of progress with the postcrisis global (G20) reform of the financial system, in
five key areas of new regulation:(1) making financial institutions more resilient;(2) ending …

We provide evidence that a weak banking sector has contributed to low productivity growth
following the European sovereign debt crisis. An unexpected increase in capital …

The average distance of US banks from their small corporate borrowers increased before
the global financial crisis, especially for banks in competitive counties. Small distant loans …

This paper extends the work of Balachandran and Faff (2015) and reviews the literature on
effective governance, financial markets, institutions, and crises. Specifically, we discuss the …

The financial crisis that began in 2007 was triggered by over-leveraged homeowners and a
severe downturn in US housing markets. However, a reasonably well-supervised financial …

This paper investigates banks' incentive to bias the risk estimates they report to regulators.
Within loan syndicates, we find that banks with less capital report lower risk estimates …

I study economies where banks do not fully internalize the social costs of their lending
decisions, which leads to real overinvestment. The bank capital requirement that restores …

After the global financial crisis, the Financial Stability Board (FSB) began designating some
financial institutions as “Global Systemically Important Banks (GSIBs)”. Because GSIB status …

This paper investigates the incentives for banks to bias their internally generated risk
estimates. We are able to estimate bank biases at the credit-level by comparing bank …