Abstract Regulators often delegate monitoring to local supervisors, which can improve information collection, but also lead agency problems and capture. We document that following the closure of a US bank regulator’s field offices, banks they previously supervised actively increased their risk failure by distributing cash, increasing leverage, lending more than similar at same time place. Super...

How Well Capitalized Are Well-Capitalized Banks? T he wave of bank and savings and loan failures in the 1980s and early 1990s, and the resulting losses to deposit insurance funds, served to highlight the need for banks to hold sufficient capital to survive difficult times. In addition, many argued that deposit insurance made it imperative that banks be better capitalized, since deposit insuranc...

FIE FEDERAL DEPOSIT Insurance Improvemnent Act of 1991 (FDICJA) requires many changes in bank super-vision and regulation, including a requirement that the federal supervisory agencies conduct on-site examinations of all insured depository institutions at least once every 12 months.1 Examinations of small (assets less than $100 million), well-capitalized banks are required only every 18 months....

This paper reviews the theoretical and empirical literature on impact of bank regulation lending. It also structures evidence according to various regulatory measures The surveyed generally indicates that lending could be asymmetric, depending trade-off between costs benefits regulation. from studies shows is ambiguous. Although many found negative, some established it was positive while others...

On financial system, Bank is the most important financial intermediaries in economy. It has played a central role to the entire financial system. The bank’s capital also has played an important role on the bank risk management and governance. This study issued the function of the financial capital adequacy ratio on Bank supervision system. The article establish the multiple regression model ana...

This historical study utilizes annual insured bank data from 1936 through 1989 to empirically evaluate the impact of bank regulation on bank risk taking in a cross-country comparison of the United States and Canada. Risk is hypothesized to be determined, in part, by the regulatory environment in which a bank operates. The findings of this analysis contributes to the contemporary deregulation po...

This paper investigates whether different types of regulation may have a direct or indirect (through market power) impact on bank’s efficiency. We use a set of data containing European banks to consider the impact of regulations related to capital requirements, official supervisory power, restrictions on bank activities, and private monitoring on bank efficiency. Our results suggest that offici...

Using bank CDS spreads, we examine three types of determinants Euro Area default risk in the period 2008–2019: characteristics related to new regulation, bank-sovereign nexus and monetary policy stance. We find that Basel 3 regulation improves banks’ profile since higher capital ratios more stable deposit funding contribute significantly lower spreads. confirm persistence interconnectedness sov...