Bank Capital and Risk-Taking (eBook)

Preface 6
Contents 8
List of Tables 11
List of Figures 13
1 Introduction 14
2 Theoretical Literature 20
2.1 Moral Hazard in Banking 20
2.2 Capital Regulation in Models of Moral Hazard 23
2.3 The Disciplining Effect of Charter Value 26
2.4 A Model with Charter Value and Endogenous Capital 29
2.5 Further Considerations 34
2.6 Hypotheses on ... 38
3 Capital and Risk Adjustments after an Increase in Capital Requirements 43
3.1 Introduction 43
3.2 The Empirical Model 45
3.3 Data Description 55
3.4 Regression Analysis 60
3.5 Conclusion 76
3.6 Appendix 1: Descriptive Statistics 77
3.7 Appendix 2: Robustness Checks 81
4 Capital and Risk Adjustments over the Business Cycle 91
4.1 Introduction 91
4.2 The Empirical Model 93
4.3 Data Description 101
4.4 Regression Analysis 103
4.5 Conclusion 116
4.6 Appendix 1: Descriptive Statistics 117
4.7 Appendix 2: Robustness Checks 120
5 The Disciplining Effect of Charter Value on Risk- Taking 124
5.1 Introduction 124
5.2 The Empirical Model 126
5.3 Data Description 134
5.4 Regression Analysis 135
5.5 Conclusion 145
5.6 Appendix 1: Descriptive Statistics 147
5.7 Appendix 2: Robustness Checks 152
6 Final Remarks 153
References 157