Author/Editor: Natalya Martynova, Lev Ratnovski, Razvan Vlahu.

Release Date:November, 2015

Traditional theory suggests that more profitable banks should have lower risk-taking
 incentives. Then why did many profitable banks choose to invest in untested financial
 more...

Author/Editor: Enrico Camillo Perotti, Lev Ratnovski, Razvan Vlahu.

Release Date:August, 2011

The paper studies risk mitigation associated with capital regulation, in a context where banks may choose tail risk asserts. We show that this undermines the traditional result that high capital more...