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A simple analytical framework of bank's behaviour is presented to explore the key drivers of banks' profitability … prudential measures (here focus will be devoted on capital requirements) interact affecting bank's profitability (focus here is … bank issuing deposits (and exploiting its implicit rent) …
Persistent link: https://www.econbiz.de/10012960454
On 3 December EY hosted a SUERF conference on banking reform with Sir Howard Davies, the Chairman of RBS, and Dame Colette Bowe, the Chairman of the Banking Standards Board, as the two keynote speakers. Professor David Miles (Imperial College) gave the SUERF 2015 Annual Lecture on Capital and...
Persistent link: https://www.econbiz.de/10011554963
deposits. However, I also find that, for this effect to occur, capital requirements may have to be stringent enough: When bank …
Persistent link: https://www.econbiz.de/10012937574
We provide a welfare comparison of the two types of banking regulation commonly used to address moral hazard problems, deposit rate ceilings and minimum capital requirements. It is well understood that interference with the price mechanism may lead to inefficiencies -- in the case of a deposit...
Persistent link: https://www.econbiz.de/10013012740
In November 2021, the President’s Working Group on Financial Markets (PWG) issued a report analyzing the rapid expansion and growing risks of the stablecoin market. PWG’s report determined that stablecoins pose a wide range of potential hazards, including the risks of inflicting large losses...
Persistent link: https://www.econbiz.de/10013309420
make bank deposits endogenously long-term. Capital regulation addresses deposit dilution but is subject to a time … significantly impacts optimal bank capital regulation. We examine how capital regulation stringency changes across different …
Persistent link: https://www.econbiz.de/10014355377
The Basel capital framework plays an important role in risk management by linking a bank's minimum capital requirements …
Persistent link: https://www.econbiz.de/10003933254
Persistent link: https://www.econbiz.de/10012520843
Persistent link: https://www.econbiz.de/10013370595
' tightening on bank probabilities of default is positive albeit statistically insignificant, suggesting that risk-taking may crowd …
Persistent link: https://www.econbiz.de/10012850186