unweighted leverage requirements, their differential impact on bank lending, and equity buffer accumulation in excess of … regulatory minima. Tighter risk-weighted capital requirements reduce loan supply and lead to an endogenous fall in bank … profitability, reducing bank incentives to accumulate equity buffers and, therefore, increasing the incidence of bank failure …

This paper studies the impact of bank regulation and taxation in a dynamic model where banks are exposed to credit and … an inverted U–shaped relationship between capital requirements and bank lending, efficiency, and welfare, with their … welfare costs than taxes on non-deposit liabilities. -- Bank Regulation ; Taxation ; Dynamic Banking Model …

regulatory liquidity requirements on bank behavior. A multi-stage decision situation allows for considering the interaction … between credit risk and liquidity risk of banks. This interaction is found to make a risk neutral bank behave as if it were …

Bank capital, and a bank's liquidity position, are concepts that are central to understanding what banks do, the risks … that can absorb losses that could otherwise threaten a bank's solvency. Meanwhile, liquidity problems arise due to … interactions between funding and the asset side of the balance sheet — when a bank does not hold sufficient cash (or assets that …

first. Next, a ‘fundamental' bank valuation model is introduced. Based on sound economics and finance principles, it allows …