The global financial crisis has highlighted the limitations of risk-sensitive bank capital ratios. To tackle this … steady state value of the regulatory minima for the two ratios strongly depends on the riskiness and the composition of bank …

counter-cyclical capital schemes is whether conditioning variables are bank-specific or system-wide. The evidence presented in … the paper indicates that the idiosyncratic component can be sizable when a bank-specific approach is used. This makes a …