– the interplay between credit-allocation regulation and bank capital structure … inequality. We hypothesize that such influence affects bank governance and elicits bank capital responses. Our hypothesis yields …Political influence on bank credit allocation is often viewed as being necessary to address social problems like income …

I develop a theory of political influence on bank lending and capital structure. The idea is that legislators may want …/or political benefits. The regulator, who implements the laws passed by legislators, uses both asset-choice regulation and capital … accompanied by higher capital requirements. Second, when credit-allocation regulation is adopted, political or regulatory hubris …

I develop a theory of political influence on bank lending and capital structure. The idea is that legislators may want …/or political benefits. The regulator, who implements the laws passed by legislators, uses both asset-choice regulation and capital … accompanied by higher capital requirements. Second, when credit-allocation regulation is adopted, political or regulatory hubris …