A Gap in Regulation and the Looser Lending Standards that Followed
New research highlights how disparities in the regulatory treatment of banks and shadow banking organizations before the fi nancial crisis allowed heavily-regulated bank holding companies to lend through their less-regulated subsidiaries. Doing so helped them to conserve their regulatory capital, avoid recognizing costly loan losses, and pursue riskier lending while still adhering to banking regulations.
Year of publication: |
2014
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---|---|
Authors: | Demyanyk, Yuliya ; Loutskina, Elena |
Published in: |
Economic Commentary. - Federal Reserve Bank of Cleveland. - 2014, Oct, 20
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Publisher: |
Federal Reserve Bank of Cleveland |
Saved in:
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