proverbial race between hare and hedgehog in financial regulation and demonstrate how such an approach can be implemented in … proposes to apply regulatory burdens equivalent to prudential banking regulation if the respective transactional structures …

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 …