Social capital and bank stability
Using a sample of public and private banks, we study how social capital relates to bank stability. Social capital, which reflects the level of cooperative norms in society, is likely [...]
An overlapping generations model of taxpayer bailouts of banks
The paper constructs an overlapping generations model to evaluate how different bank rescue plans affect banks’ risk-taking incentives. For a non-competitive banking industry, we find bailout with tax imposed on [...]
Bank regulatory arbitrage via risk weighted assets dispersion
Increased dispersion of Risk Weighted Assets (RWA) troubles regulators as potentially undermining prudential supervision. We study the determinants of RWA/EAD (Exposure-At-Default) on data painstakingly compiled from Basel Pillar-Three for 239 [...]
Wealth and risk implications of the Dodd-Frank Act on the U.S. financial intermediaries
We contribute to the current regulatory debate by examining the wealth and risk effects of the Dodd-Frank Act on U.S. financial institutions. We measure the effects of key legislative events [...]
Rethinking Corporate Law During a Financial Crisis
Since the Financial Crisis of 2008, most reform measures and discussions have asked how the law of financial regulation could be improved to prevent or mitigate future crises. These discussions [...]
To be bailed out or to be left to fail? A dynamic competing risks hazard analysis
During the global financial crisis, a large number of banks worldwide either failed or received financial aid thus inflicting substantial losses on the system. We contribute to the early warning [...]
Flexible and mandatory banking supervision
The implementation of tighter regulation and more powerful supervision may impose large social costs due to the strong reliance on supervisory information that requires direct assessment by a supervisor (i.e. [...]
The effect of the political connections of government bank CEOs on bank performance during the financial crisis
This study investigates how the political connections of government bank CEOs affected their banks’ performance during the 2007–2009 financial crisis. Examination of global data shows that government banks with politically [...]
The Financial Crisis: An Inside View
This paper reviews the policy response to the 2007–09 financial crisis from the perspective of a senior Treasury official at the time. Government agencies faced severe constraints in addressing the [...]
The Only Game in Town: Central Banking as False Hope
Our central bankers are not a priesthood. Often deployed in critiques of central banking mystique or in genuflection to the incantations they still occasionally wheel out to keep markets on [...]