Showing 1 - 10 of 1,942
This paper reviews the cost-benefit analysis, or “regulatory impact analysis” (RIA), in US bank regulators’ risk-based capital (RBC) rule proposals. We review the principles of cost-benefit analysis and its application by US bank regulators. We provide a brief background on RBC rules and...
Persistent link: https://www.econbiz.de/10012417012
After analyzing the different reasons why the financial system and also the regulatory framework induced procyclicality, this paper reviews the experiences of three countries which have introduced dynamic provisioning as a regulatory tool to limit procyclicality. The case of Spain - the country...
Persistent link: https://www.econbiz.de/10003983429
gains in the longer term) with due consideration being given to initial conditions concerning regulation, taxes and exchange …
Persistent link: https://www.econbiz.de/10013156608
This paper evaluates the effectiveness of risk-based capital (RBC) regulation and challenges some evidence from the …
Persistent link: https://www.econbiz.de/10012943979
Risk-based capital (RBC) ratios are an important component of US banking regulation, yet empirical evidence on the … effectiveness of RBC regulation has been mixed. Avery and Berger (1991) find that the RBC ratio improves upon the standard capital … RBC ratio. The results have significant implications for US banking regulation …
Persistent link: https://www.econbiz.de/10012974653
Although policymakers often discuss tradeoffs between bank competition and stability, past research provides differing theoretical perspectives and empirical results on the impact of competition on risk. In this paper, we employ a new approach for identifying exogenous changes in the competitive...
Persistent link: https://www.econbiz.de/10012854777
regulation limits the banks’ ratio of FX derivatives positions to capital. By using cross-bank variation in the tightness of the … regulation, I show that the regulation causes a reduction in the supply of FX derivatives. Controlling for hedging demand, I find …-standard-deviation increase in a firm’s exposure to the regulation shock transmitted by banks, exports fall by 17.1% for high-hedge firms and rise …
Persistent link: https://www.econbiz.de/10013243515
We examine the effect of the Jumpstart Our Business Startups (JOBS) Act on biotech startups, who conduct almost 40% of IPOs since 2012. Reduced compliance costs encourage innovation capital formation as biotech IPO volume increases 200% and proceeds rise by 30%. After the JOBS Act, biotech...
Persistent link: https://www.econbiz.de/10012829465
This paper proposes a theoretical model that incorporates corporate governance into the basic CAPM, where corporate governance affects the disutility of managerial effort and the possibility of managers to divert company resources. It shows that corporate governance affects firms’ stock...
Persistent link: https://www.econbiz.de/10010212666
and may represent unintended side effects of new regulation enacted in the wake of the financial crisis, such as Basel III …
Persistent link: https://www.econbiz.de/10011879015