indicate that a 1 percentage point increase in a bank's equity-to-assets ratio lowers its cost of equity by about 18 basis …

convey to bank shareholders when market and credit risk regulatory capital requirements are set using bank internal model … estimates. These subsidies are not uniform across the risk spectrum, and, as a consequence, internal model regulatory capital … requirements will cause distortions in bank lending behavior …

the financial crisis. We differentiate among various types of capital ratios: the Basel risk-adjusted ratio; the leverage … capital is stronger when capital is measured by the leverage ratio rather than the risk-adjusted capital ratio; (iv) higher …