Bank risk-based capital (RBC) standards require banks to hold differing amounts of capital for different classes of … assets, based almost entirely on a credit risk criterion. The paper provides both a theoretical and empirical framework for … evaluating such standards. A model outlining a pricing methodology for loans subject to default risk is presented. The model …

To understand the effects of regulation on mortgage risk, it is instructive to track the history of regulatory changes …-changing regulation impacted mortgage lending and risk. We use cross-sectional differences in the time- series variation of delinquency …. However, in developed countries with fairly stable systems of financial regulation, it is difficult to track these effects. We …