The Value of Regulators as Monitors: Evidence from Banking

The author thanks the editor, Victoria Ivashina, the associate editor, and two anonymous referees for suggestions that significantly improved the paper. The author is especially thankful to Burton Hollifield, Ariel Zetlin-Jones, Steve Karolyi, and Stefan Lewellen for their guidance. The author is also thankful to James Albertus, Andrew Bird, Matthieu Chavaz, Tetiana Davydiuk, Filippo De Marco, Matthew Denes, Mark Egan, Michael Ewens, Mark Flannery, Brent Glover, Joao Granja, Anna Kovner, Martien Lamers, David Lucca, Abhiroop Mukherjee, John Nash, Thomas Ruchti, Chester Spatt, Chris Telmer, Stijn Van Nieuwerburgh, Alminas Žaldokas, conference participants at the 2019 AFA Meetings, the Bocconi-Sapienza-RFS New Frontiers in Banking: from Corporate Finance to Risk Management Conference, the Columbia/BPI 2019 Research Conference, the 2018 EFA Meetings, the Norges Bank Workshop “Prepared for the Next Crisis? The Costs and Benefits of Financial Regulation,” the 2018 SFS Cavalcade, and seminar participants at BI Norway, Carnegie Mellon, the Cleveland Fed, the Fed Board, HKUST, the Indonesian Financial Authority (OJK) International Research Seminar, the New York Fed, Nova School, the Office of the Comptroller of the Currency, Purdue University, Southern Methodist University, Toulouse School of Economics, University of Florida, University of Notre Dame, and Virginia Tech for comments and suggestions.