This paper identifies the main dimensions of capital regulation. We use survey data from 142 countries from the World Bank's (2013) database covering various aspects of bank regulation. Using multiple explorative factor analysis, we identify two main dimensions of capital regulation: complexity...

This paper provides a novel rationale for why banks combine lending and deposit taking. Contrary to existing work, it shows that demand deposits commit banks to monitoring even if deposit insurance is implemented. Investors with liquidity needs withdraw their deposits early and are not willing...