We develop a dynamic model of endogenous bank capital choice in which banks cannot access the equity market to raise … capital in some states due to equity market frictions. In these frictional states, banks with a shortage in bank capital need … requirements. Our model suggests that a typical bank will try to keep valuable relationship lending and prefer to eat up capital …

Purpose: This paper analysed the effects of bank's risk on capital buffer in Namibia, in the absence of the consensus … both the short and long run. On the contrary, bank size in form of log of total loans positively affects capital buffers in …