Andersen, Henrik; Juelsrud, Ragnar Enger - In: Latin American journal of central banking : LAJCB 5 (2024) 2, pp. 1-16
In this paper, we analyse the appropriate capital adequacy ratio for banks from a socio-economic perspective. More … equity capital in banks can contribute to financial stability by reducing the risk of costly banking crises, but lending may … become more expensive if banks are required finance their assets with more equity. When assessing optimal capital adequacy …