1. Discussion and Working Paper // 2016

    Introducing the “Leverage Ratio” in Assessing the Capital Adequacy of European Banks

    The European Banking Authority (EBA) disclosed the effect of losses in a stress test on bank capital ratios on 29 July 2016. We assess the capital adequacy of these banks based on these disclosures and using two…

  2. Discussion and Working Paper // 2016

    High time to tell European banks: No dividends

    In October 2014, the European Banking Authority (EBA) and the European Central Bank did a comprehensive assessment of the balance sheets of the largest 123 banks in the Eurozone. They calculated a capital…

  3. Discussion and Working Paper // 2016

    The Wolves of Wall Street: Managerial Attributes and Bank Business Models

    We investigate the role of executive-specific attributes in explaining bank business models beyond pay-per-performance incentives. We decompose the variation in business models and show that idiosyncratic…

  4. Discussion and Working Paper // 2016

    What Do a Million Observations Have to Say About Loan Defaults? Opening the Black Box of Relationships

    Using a unique dataset of more than 1 million loans made by 296 German banks, we evaluate the impact of many aspects of customer–bank relationships on loan default rates. Banks need historical data about their…

  5. Discussion and Working Paper // 2016

    An analysis of euro area bond maturities and simulation of the introduction of new CACs

    This paper studies the maturity structure of sovereign debt in the euro area and the penetration of the sovereign debt stock with a new type of collective action clauses (CACs), labeled Creditor Participation…

  6. Discussion and Working Paper // 2016

    Thinking About Prices versus Thinking About Returns in Financial Markets

    Prices and returns are alternative ways to present financial market information and to elicit financial market expectations. But do investors make sense of prices and returns in the same way? Also, do they state…