Although nation-based systems of financial regulation constitute a second-best approach to global welfare maximization …

assets to survive runs. Regulation similar to the liquidity coverage ratio and the net stable funding ratio (that are soon be … implemented) can change the bank's incentives so that runs are less likely. Optimal regulation would not mimic these rules …

Minimum capital requirements are a central tool of banking regulation. Setting them balances a number of factors …, including any effects on the cost of capital and in turn the rates available to borrowers. Standard theory predicts that, in …

Regulation consists of rulemaking and enforcement. Economic theory offers two complementary rationales for regulating … and efficiency across society as a whole. Agency-cost theory recognizes that incentive conflicts and coordination problems … arise in multi- party relationships and that regulation introduces opportunities to impose rules that enhance the welfare of …

We propose a theory of regulatory arbitrage by banks and test it using trust preferred securities (TPS) issuance. From …

public-interest view of regulation, not regulatory capture …