costs for banks of the increase in capital requirements under Basel III. We bring empirical evidence on this issue by …-2012, controlling for risk-taking as well as a range of variables including the business model. We find that an increase in capital … significant increase in other business line activities. Looking at revenue and cost components, the positive effect of capital on …

This paper examines the sensitivity of non-financial corporate lending to banks' capital ratio and their supervisory … capital requirements. We use a unique database for the French banking sector between 2003 and 2011 combining confidential bank …-level Bank Lending Survey answers with the discretionary capital requirements set by the supervisory authority. We find that on …

We investigate the impact of changes in capital of European banks on their risk-taking behavior from 1992 to 2006, a … time period covering the Basel I capital requirements. We specifically focus on the initial level and type of regulatory … capital banks hold. First, we assume that risk changes depend on banks' ex ante regulatory capital position. Second, we …

capital buffer. This increase in bank leverage then translates into higher probability of insolvency. Most importantly, I …

In the paper, we first investigate the impact of an increase in capital requirements on the equity risk (beta) of … listed banks in France. We find that an increase in capital ratios reduces banks’ systematic risk. This leads to a decrease … cost of capital due to higher capital ratios appears to be mitigated by the decrease in shareholders’ expected return on …

We measure the impact of bank capital requirements on corporate borrowing and business activity. We use loan-level data … and take advantage of the transition from Basel 1 to Basel 2. While under Basel 1 the capital charge was the same for all …-way variation to empirically estimate the semi-elasticity of bank lending to capital requirement. This rich identification allows us …