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 …

the denominator of capital adequacy ratios. Our approach centres on modelling the internal risk structure of bank …