Capital

Working Paper

Why Don?t All Banks Practice Regulatory Arbitrage? Evidence from Usage of Trust Preferred Securities

We investigate why only some banks use regulatory arbitrage. We predict that banks wanting to be riskier than allowed by capital regulations (constrained banks) use regulatory arbitrage while others do not. We find support for this hypothesis...Read more

René Stulz
01 December 2015

The Promise and Perils of Crowdfunding: Between Corporate Finance and Consumer Contracts

‘Crowdfunding’ — raising capital through large numbers of small contributions — is a burgeoning phenomenon, spurred by the internet’s capacity to reduce communication costs. Its still-evolving status is reflected in diversity of contracting...Read more

John Armour
Luca Enriques
18 September 2017

Fintech and the Financing of Entrepreneurs: From Crowdfunding to Marketplace Lending

For the last decade economists have been preoccupied with the decline in bank financing to small businesses and entrepreneurs. This effort has produced a better understanding of the obstacles to external financing. We examine the market and ...Read more

Joseph McCahery
Erik Vermeulen
25 September 2017

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