unweighted leverage requirements, their differential impact on bank lending, and equity buffer accumulation in excess of … regulatory minima. Tighter risk-weighted capital requirements reduce loan supply and lead to an endogenous fall in bank … profitability, reducing bank incentives to accumulate equity buffers and, therefore, increasing the incidence of bank failure …

, policymakers, and bank managers for better decision making. …

This paper presents a system for bank capitalization and regulation which reduces procyclicality from money and finance … shock and support a higher output economy while minimizing moral hazard issues, costs to the government and bank cost of …