affected banks and by non-affected non-bank financial institutions (NBFIs)? To answer this question, we apply a difference … that insurance companies, financial enterprises, and factoring companies - but not leasing companies - and Non-EBA banks … expand their corporate lending relative to EBA banks. In particular, NBFIs use the opportunity to expand their credit …

risk premium that must go down if banks have more equity. It is thus incorrect to assume that the required return on equity … remains fixed as capital requirements increase. It is also incorrect to translate higher taxes paid by banks to a social cost … example, by the Basel III agreement is not necessary for banks to perform all their socially valuable functions and likely …