How does the shadow banking system respond to changes in capital regulation of commercial banks? We propose a …. Tighter capital requirements for regulated banks cause higher liquidity premia, leading to higher shadow bank leverage and a … capital requirement is around 16% …

We examine the pervasive view that equity is expensive which leads to claims that high capital requirements are costly …. It is thus incorrect to assume that the required return on equity remains fixed as capital requirements increase. It is … costs. Approaches based on equity dominate alternatives, including contingent capital. To achieve better capitalization …

We propose a methodology for measuring the market-implied capital of banks by subtracting from the market value of … risk of banks with a low market capitalization. We argue that this adjusted measure of capital is the relevant market …-implied capital measure for policy makers. We propose an econometric model for the combined simulation of equity and CDS prices, which …

microfounded design of capital surcharges that target the interconnectedness component of systemic risk. These surcharges increase … stability. Furthermore, I show that capital requirements are more effective than default fund contributions when tail …

step towards fair burden sharing. Bank recapitalisation, if necessary, should be done by raising the level of capital so as …

respect to e.g. capital adequacy, shadow banking and accounting. The paper also reviews the current levels of development of … the Indian banking, capital markets, pensions and insurance sub-sectors and past episodes of egregious wrongdoing. The …