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-based capital (RBC) rule proposals. We review the principles of cost-benefit analysis and its application by US bank regulators. We …This paper reviews the cost-benefit analysis, or “regulatory impact analysis” (RIA), in US bank regulators’ risk … RBC rules and related rules on bank liquidity. We find that nine of the 27 rules include RIAs. Five of the RIAs claim the …
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a financial institution's economic capital. Based on a numerical simulation model, we provide concrete examples of how … granularity affects capital levels. We achieve this by following two simulation approaches, including a dynamic setup as a more … lead to significant changes in the competitive environment should banks consider adding a granularity adjustment to the …
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We analyse the effect of leverage components and banks' "business model channels" on risk-taking for Brazilian banks … is relevant for determining banks' risk. We highlight two important findings. First, we provide novel insights for the …-balance-sheet operations are risky for investment and foreign banks. These results provide important information for banking supervision and …
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