If debt markets can price the risk of projects accurately, then the interests of shareholders and the regulator diverge. Shareholders see their value maximised by an equity-rewarded executive. However we demonstrate that such executives destroy welfare by selecting excessively risky projects due to two types of government-induced distortions: the debt tax shield and the implicit too-big-to-fail...

Simple state-independent monetary institutions are shown to secure optimal cooperative policies in a stochastic, linear-quadratic two-country world with international policy spill-overs and national credibility problems. Institutions characterize delegation to independent central bankers facing quadratic performance related contracts punishing or rewarding deviations from primary and intermedia...

There is an empirical connection between deposit insurance, risktaking, and insolvency. We argue that if banks maximize profit this amounts to a puzzle (even taking into account that deposit insurance decreases incentives for customers to monitor banks). However, we show that the empirical regularities can be well captured if bankers are motivated by reciprocity towards their customer base.

In April 2015, as a means for improving the integrity of banking sector, The Netherlands adopted Disciplinary Law bankers. this article, authors discuss Banker’s Oath by which bank employees are bound to disciplinary law, procedures and sanctions that can be imposed, acts bankers do not fall within scope conflicts interest may exist between employee employs, question whether banks notify an mus...

Objective: To assess the level of disability, the deep cervical flexor endurance and fear avoidance beliefs (FAB) in bankers with neck pain and to find a correlation between disability and deep cervical muscle endurance, FAB and disability, FAB and deep flexor muscle endurance. Methods: It was an observational study. The Subjects who had neck pain and minimum 5 years’ experience as a Banker par...

Abstract We investigate how bankers use information from lending relationships to help borrowers find partners for strategic alliances. Firms that have borrowed the same banker or share an indirect connection through a network of are significantly more likely enter alliance. Consistent with overcoming informational frictions, their ability facilitate alliances decreases banker-network distance,...