variation in the data based on the theories of bank capital regulation. The results show that countries with high average …

of 49 countries between 2005 and 2013. These measures are bank regulations that apply a discrimination−e.g. a less …

analysis is relevant to the debate on bank capital regulation, and complements Admati et al. (2010). In that paper we argued … subsidies, the effects of leverage reduction on bank managers or shareholders do not represent a social cost. In fact, we show … to leverage reduction leads to social inefficiencies. The main beneficiaries from high leverage may be bank managers. The …