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This article examines the impact of the new supervisory standards of Basel 2.5 and Basel III for bank trading …
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higher loan interest rates, then borrowers are likely to become more risky, which may destabilize the lending bank. This …
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European supervisors aggressively requested more capital at large banks. That may cut credit to the economy. We confirm that especially larger banks cut loans while less-significant banks partly offset that credit drop. Moreover, we identify nasty spillovers from that interaction. Specifically,...
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