Aboura, Sofiane; Lépinette, Emmanuel - In: Economics Bulletin 35 (2015) 2, pp. 924-935
The capital structure of banks has become the focus of an extended debate among policy-makers, regulators and academics. The seminal Modigliani-Miller (1958) theorem is seen as supportive of regulators' drive to require higher equity capital to banks. This raises the question on to what extent...