[...]This paper focuses on the relative emphasis thatthe structure of regulatory capital places on formulas andon supervision. The two are not viewed as mutually exclusive,but as elements to which capital policy implicitlyassigns relative weights. We will see that in U.S. regulatorypractice,...

[...]We focus here on three types of capital ratios—riskweighted,leverage, and gross revenue ratios. For each ratio, weexamine what makes it actually or potentially useful for bankregulation and we ask whether it is indeed significantly relatedto subsequent bank failure. Perhaps not...

[...]This paper investigates whether the cyclical effects ofmonetary policy have been influenced by the secular growth insecuritization in recent decades. In particular, when the centralbank makes a specific monetary policy move—such asincreasing the overnight interbank rate by 50 basis...

[...]The purpose of this article is to develop a clearerpicture of the importance of payments services to the bankingindustry. This goal is served by taking a broad view of thepayments business and analyzing information provided bylarge bank holding companies (BHCs) in their annualreports. BHCs...

[...]In this article, we provide insight into the policyaspects of this informational time decay by assessing howthe length of time between bank examinations affects thequality of information available to supervisors. For thesepurposes, we define the quality of information in terms ofhow...

[...]We address several questions in this paper. First,how could macro markets be useful to the average person?Second, how large are the potential benefits from diversificationif these markets were to be introduced andused optimally? Third, can existing financial marketsachieve a similar degree...

[...]The most obvious possible, and undesirable,impact on bank behaviour of risk-weighted capital requirementsis that excessive differentials in the weights appliedto different categories of assets might induce banks to substituteaway from highly risk-weighted assets. In the early1990s, U.S....

[...]This paper examines the impact that the PCAstandards had on bank portfolios following the passage ofFDICIA in 1991. To do this, the simultaneous equationsmodel developed by Shrieves and Dahl (1992), and latermodified by Jacques and Nigro (1997) to study the impactof risk-based capital, is...