-absorbing capital, or equity. Measuring those costs requires careful consideration of a wide range of issues about how shifts in funding … of the benefits from having banks use more equity no estimate of costs - however accurate - can tell us what the optimal … wide range of countries over a long period to assess risks to banks and how equity funding (or capital) protects against …

market financing, debt or equity financing - seems to be particularly harmful or beneficial for growth. …

constraints, and costs of equity issuance. Near the steady state, these intermediaries can raise equity finance at no cost through … credit offered to firms, and requiring the intermediaries to raise further funds by paying the cost to issue equity. This … leads to the occasional sharp increases in interest spreads and the counter-cyclical, positively skewed equity issuance that …

firms rely heavily on equity financing, even though benefits associated with debt (like tax shields) appear to be high and … firm and its managers or employees. Equity financing generally strengthens a firm's credibility to honor implicit promises …

unweighted leverage requirements, their differential impact on bank lending, and equity buffer accumulation in excess of … profitability, reducing bank incentives to accumulate equity buffers and, therefore, increasing the incidence of bank failure … equity buffers, therefore leading to lower bank failure rates. …

In recent years, some European countries have relied on elements of an allowance for corporate equity (ACE) in the …

choose their portfolio risk, bank size, and capital holdings. Banks voluntarily hold equity when the buffer effect against … are larger, choose riskier portfolios, and have less equity. Moreover, binding capital requirements or levies on bank …