Showing 1 - 10 of 12,567
We assess the influence of competition and capital regulation on the stability of the banking system. We particularly … ask two questions: i) how does capital regulation affect (endogenous) entry; and ii) how do (exogenous) changes in the … competitive environment affect bank monitoring choices and the effectiveness of capital regulation? Our approach deviates from the …
Persistent link: https://www.econbiz.de/10011348715
Persistent link: https://www.econbiz.de/10011548082
Several countries have recently introduced national capital standards exceeding the internationally coordinated Basel III rules, thus suggesting a 'race to the top' in capital standards. We study regulatory competition when banks are heterogeneous and give loans to firms that produce output in...
Persistent link: https://www.econbiz.de/10011447527
Several countries have recently introduced national capital standards exceeding the internationally coordinated Basel III rules, which is inconsistent with the 'race to the bottom' in capital standards found in the literature. We study regulatory competition when banks are heterogeneous and give...
Persistent link: https://www.econbiz.de/10011591503
Persistent link: https://www.econbiz.de/10011741246
Persistent link: https://www.econbiz.de/10012521622
In 2014 the Prudential Regulation Authority, Bank of England, was given a new secondary objective to facilitate … mitigating risk in the absence of good prudential regulation, and (iv) if prudential regulation is set at the same time that the …
Persistent link: https://www.econbiz.de/10012948427
Minimum capital requirement regulation forces banks to refund a substantial amount of their investments with equity … paper argues that, in addition to the buffer and cost effect of capital regulation, there is a strategic effect. A binding … capital requirement regulation restricts the lending capacity of banks, and therefore reduces the intensity of loan interest …
Persistent link: https://www.econbiz.de/10010486698
Several countries have recently introduced national capital standards exceeding the internationally coordinated Basel III rules, thus suggesting a "race to the top" in capital standards. We study regulatory competition when banks are heterogeneous and give loans to firms that produce output in...
Persistent link: https://www.econbiz.de/10011445611
This paper studies regulatory competition in the banking sector in a model where banks are heterogeneous and taxpayers come up for the losses of failing banks. Capital requirements force the weakest banks to exit the market. This gives rise to a signalling effect of capital standards, as...
Persistent link: https://www.econbiz.de/10010342193