In this paper, we analyse the appropriate capital adequacy ratio for banks from a socio-economic perspective. More … equity capital in banks can contribute to financial stability by reducing the risk of costly banking crises, but lending may … become more expensive if banks are required finance their assets with more equity. When assessing optimal capital adequacy …

We develop a new framework to study the implementation of monetary policy through the banking system. Banks finance … illiquid loans by issuing deposits. Deposit transfers across banks must be settled using central bank reserves. Transfers are … profiting from lending and incurring greater liquidity risk. We calibrate our model to study quantitatively why banks have …

proposed in the new Basel Accord. Using regulatory returns for UK banks and building societies, we empirically assess how … changing a firm's individual capital requirement affects its capital ratio. We find that banks faced with an increase in …

-weighted assets (RWAs) across banks and jurisdictions and how this might undermine the Basel III capital adequacy framework. We … discuss the key drivers behind the differences in these calculations, drawing upon a sample of systemically important banks …

changes in risk-weighted assets (RWAs) under stress, including for non-internal ratings based (IRB) banks (through a quasi … assumptions and scenarios; (c) allowing stress testers to run multi-year scenarios (up to five years) for hundreds of banks …

strategy banks adopt in response to the reform, and that banks tend to prefer some strategies over others. Specifically, an … less likely to be preferred by banks. We also find that the undesired macroeconomic effects of the reform during the …

-management capabilities of major banks. The quality of leadership and commitment by all involved has been instrumental in the success of this … major implementation effort. APRA’s analysis of the adequacy of capital for systemically relevant banks is sound. …