How Do Banks React to Increased Asset Risks? Evidence from Hurricane Katrina by Claudia Lambert, Felix Noth, Ulrich Schuewer :: SSRN

How Do Banks React to Increased Asset Risks? Evidence from Hurricane Katrina by Claudia Lambert, Felix Noth, Ulrich Schuewer :: SSRN:

Two takeaways:
Banks increase risk-based capital ratios in times of great uncertainty.
The increase comes largely from well capitalized banks and by reducing loans.  

From the Abstract:
"[We] find that banks in the disaster areas increase their risk-based

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