Hendrik Hakenes

TL;DR: The authors empirically investigated the effect of government bail-out policies on banks outside the safety net and found that government guarantees to some banks strongly increase the risk-taking of the competitor banks not protected by such guarantees.

TL;DR: The authors empirically investigated the effect of government bail-out policies on banks outside the safety net and found that government guarantees strongly increase the risk-taking of competitor banks, and that there is no evidence that public guarantees increase the protected banks' risk taking, except for banks that have outright public ownership.

TL;DR: In this article, the relationship between bank size and risk-taking under Pillar I of the New Basel Capital Accord is discussed, and the authors find that small banks and hence small borrowers may profit from the introduction of an internal ratings based (IRB) approach if this approach is applied uniformly across banks.

TL;DR: In this article, the effects of small banks on local economic growth were discussed and it was shown that small banks operating at a regional level can spur local economic development; the effect is stronger in regions with lower initial endowments.

TL;DR: In this article, the authors analyze the competitive effects of explicit or implicit protection of banks through government bail-out policies in two models with different degrees of transparency in the banking sector.