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Persistent link: https://www.econbiz.de/10008868060
This paper contains a critique of solvency regulation such as imposed on banks by Basel I and II. It argues that banks seeking to maximize rate of return on risk-adjusted capital (RORAC) aim at an optimal level of solvency because on the one hand, solvency S lowers the cost of refinancing; on...
Persistent link: https://www.econbiz.de/10008539797