Banking

The Data Standardization Challenge

Data standardization offers significant benefits for industry and regulators alike, suggesting that it should be easy. In practice, however, the...

Bank Compensation for the Penalty-Free Loan-Prepayment Option: Theory and Tests

Commercial and industrial bank loans typically include an option to prepay the loan without penalty (zero cancellation fee). We present a first...

Corporate Governance of Banks after the Financial Crisis - Theory, Evidence, Reforms

Who Directs the Fed?

During the financial crisis, questions arose concerning links between the Federal Reserve and the business community. This paper provides the first...

The Effect of Creditor Rights on Bank Monitoring, Capital Structure and Risk-taking

We examine the multi-faceted effect of creditor rights on the way banks monitor, operate and finance themselves. We present a simple analytical model...

Corporate Governance and Banks: How justified is the match?

Banks and bank governance are different. We critically assess the arguments used to pervade these divergences in operational activities. We also...

Risk Mitigating versus Risk Shifting: Evidence from Banks Security Trading in Crises

We show that risk-mitigating incentives dominate risk-shifting incentives in fragile banks. We study security trading by banks, as banks can easily...

Corporate Governance and value preservation: The effect of the FinCEN leak on banks

We examine the market response to the disclosure of suspicious activity reports (SARs), made public as part of the FinCEN leak. We find a significant...

Who Benefits from Sustainability-linked Loans?

In recent years, there has been a significant increase in the issuance of sustainability-linked loans (SLLs), where loan contract terms depend on the...

Empty Voting and Hidden Ownership: Taxonomy, Implications, and Reforms

Most American publicly held corporations have a one-share, one-vote structure, in which voting power is proportional to economic ownership. This...

Bankruptcy's Financial Crisis Accelerator: The Derivatives Players' Priorities in Chapter 11

Taxation and Regulation of Banks to Manage Systemic Risk