We study how banks react to policy announcements during the representative policy cycle of consultation and policy publication. We use unique data covering the population of all mortgage transactions in the UK complemented with regulatory risk assessments of banks and their supervisory...

This paper is a commentary on the third in the series of consultative papers (CP3) on a New Basel Capital Accord for banks, earlier papers being issued in 1999 and 2001. While CP3 retains the overall structure of its predecessor, it contains many revisions and a more complete set of rules....