Li, Anlong; Ritchken, Peter; Sankarasubramanian, L.; … - Federal Reserve Bank of Cleveland - 1993
An investigation of the effects of interest rate and credit risk on optimal capital structure and investment decisions …. The authors show that with no uncertainty in interest rates, capital regulation will reduce the risk of the bank's assets …, but that under interest rate uncertainty, the impact of regulation may be detrimental and raise the risk of the deposits …