Max Headroom: Discretionary Capital Buffers and Bank Risk

Max Headroom: Discretionary Capital Buffers and Bank Risk

M ARTIEN L UBBERINK

^a

1 October 2022

aCorresponding Author: School of Accounting and Commercial Law, Victoria University of Wellington, PO Box 600, Wellington 6140, New Zealand. W: +64 4 463 5968; M: +64 21 134 7500; F: +64 4 463 5076.

Email:martien.lubberink@vuw.ac.nz.

I thank Bogdan-Gheorghe Cicioc, J´erˆome Legras, Antony Rich, as well as participants at the New Zealand Finance Colloquium, Auckland, 2020; the University of Melbourne Accounting and Finance Research Workshop, 2020; the AFAANZ meetings, Melbourne, 2020, and the 10^thFinancial Engineering and Banking Society meetings in Lille (France) 2021 for useful comments. I thank Griffin Geng for excellent comments. I thank Asma Jahan and Bastian Lubberink for data collection.