Eisert, TimHöhling, Elisa2025-04-012025-04-012025-01-132025-01-13http://hdl.handle.net/10362/181765I investigate the impact of regulatory penalties on bank stability by focusing on 20 systemically important banks from Europe and the U.S. between 2011 and 2023. I use the Tier 1 Capital Ratio, Return on Assets and the Z-Score to measure bank stability, along with a manually collected dataset of regulatory penalties imposed by U.S. and European supervisory authorities. The findings reveal a strong, significant and lasting impact of imposed penalties on the Tier 1 capital ratio, which offsets the negative impact on Return on Assets, so that there is no decline in the Z-Score, implying a stable insolvency risk.engRegulatory penaltiesBanking regulationFinancial stabilitySupervisory effectivenessmaster thesis203926943