This paper investigates the determinants of commercial banks' own internal capital targets and potential sensitivity of … business cycle. Banks tend to hold substantial capital buffers on top of minimum requirements, reflecting that they hold … capital for other reasons than strictly meeting the capital requirements. These results suggest that actual capital levels may …

This paper reviews studies exploring how higher bank capital requirements affect economic growth. There is little … evidence of a direct effect; research focuses on the indirect effects of capital requirements on credit supply, bank asset risk …, and cost of bank capital, which in turn can affect economic growth. Banks facing higher capital requirements can reduce …

effects of regulatory policies in the form of deposit insurance, capital requirements, bank monitoring, bank closure policy as …-related capital requirements and deposit insurance premiums. …

This study aims at assessing empirically the determinants of changes in risk-weighted bank capital ratios in the 1990s … industry level and the degree of undercapitalization are found to be relevant for bank capital ratios. The results suggest that … scheme, or they need to take additional country- or bank-specific capital requirements into account. In all countries …

The proposed risk sensitive minimum requirements of the new Basel capital accord have raised concerns about possible … appear to move up and down with the business cycle, allowing for accumulation of capital in boom periods. Provisioning for … as (shortage of) capital, which contradicts the assumptions underlying capital crunch theory. All in all, over the last …