’ possibilities of engaging in tax planning via debt shifting. This paper analyzes the effects of thin capitalization rules in the …

Tax provisions favoring corporate debt over equity finance ("debt bias") are widely recognized as a risk to financial … amount, affect corporate debt ratios and mitigate financial stability risk. We find that rules targeted at related party … borrowing (the majority of today's rules) have no significant impact on debt bias - which relates to third-party borrowing. Also …

100% leverage tax on assets such as letters of credit would reduce their natural attractiveness relative to higher … created leverage ratio for trade. This paper offers a relatively simple model approach showing the conditions under which the …-risk ones, which stand in the balance sheet of banks. The decision by the Basel Committee in early 2014 weakening the leverage …

unweighted leverage requirements, their differential impact on bank lending, and equity buffer accumulation in excess of …. Tighter leverage requirements, on the other hand, increase lending, preserve bank charter value and incentives to accumulate …

the risk of default outweighs the cost advantages of debt financing. In the optimum, banks with lower monitoring costs are …

the risk of default outweighs the cost advantages of debt financing. In this setting, banks with lower monitoring costs …