Leverage Ratio Requirement and Credit Allocation Under Basel III

We show in a theoretical model that the introduction of the leverage ratio requirement, when it interacts with the risk-based IRB capital requirements, might lead to less lending to low-risk customers and to increased lending to high-risk customers. If such allocational effects are counter-productive to financial stability, then they may pose a trade-off against the alleged positive financial stability effects of the leverage ratio requirement

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Year of publication:	2010
Authors:	Kiema, Ilkka
Other Persons:	Jokivuolle, Esa (contributor)
Publisher:	[2010]: [S.l.] : SSRN
Subject:	Theorie \| Theory \| Kapitalstruktur \| Capital structure \| Basler Akkord \| Basel Accord \| Bankenregulierung \| Bank regulation \| Kreditrisiko \| Credit risk

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Extent:	1 Online-Ressource (28 p)
Type of publication:	Book / Working Paper
Language:	English
Notes:	Nach Informationen von SSRN wurde die ursprüngliche Fassung des Dokuments December 9, 2010 erstellt
Other identifiers:	10.2139/ssrn.1723145 [DOI]
Classification:	D41 - Perfect Competition ; D82 - Asymmetric and Private Information ; G14 - Information and Market Efficiency; Event Studies ; G21 - Banks; Other Depository Institutions; Mortgages ; G28 - Government Policy and Regulation
Source:	ECONIS - Online Catalogue of the ZBW

Persistent link: https://www.econbiz.de/10013135229