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This study highlights some deficiencies of the stock markets’ risk legislation framework, and particularly the CESR (2010) guidelines. We show that the current legislative framework fails to offer incentives to financial management companies to invest in advanced models for more representative...
Persistent link: https://www.econbiz.de/10012406119
We study how supranational capital regulation incentivizes national authorities to exercise forbearance and how this …
Persistent link: https://www.econbiz.de/10012420990
. Contrary to claims in the literature that "equity is expensive" and that regulation requiring more equity in the funding mix … entails costs to society, such regulation actually helps create useful commitment for banks to avoid the inefficiently high … borrowing that comes under laissez-faire. Effective regulation is beneficial even without considering systemic risk; if such …
Persistent link: https://www.econbiz.de/10011977827
The new prudential regulation framework, established by the European Central Bank (ECB) after the financial crisis … prudential regulation framework. By using a sample of the listed bank of fifteen European Union countries over the period 1997 …
Persistent link: https://www.econbiz.de/10012846339
This study examines the impact of strengthening bank capital supervision on bank behavior in the incomplete and complete enforcement of regulations. In a dynamic model of banks facing idiosyncratic shocks, banks accumulate regulatory capital and decrease charter value and lending in the short...
Persistent link: https://www.econbiz.de/10012835563
benefits. Contrary to claims in the literature that “equity is expensive” and that regulation requiring more equity in the … funding mix entails costs to society, such regulation actually helps create useful commitment for banks to avoid the … inefficiently high borrowing that comes under laissez-faire. Effective regulation is beneficial even without considering systemic …
Persistent link: https://www.econbiz.de/10011925841
We study the political economy of bank capital regulation from a positive and normative perspective. In a general … politicians. We show that bankers and politicians agree on lobbying contributions and capital regulation that renders banks … capital regulation standards from international agreements eliminate lobbying incentives, yielding an efficient and fair …
Persistent link: https://www.econbiz.de/10011962140
larger equity reserves would reduce the need for costly regulation. The proposed Financial Choice Act is a step in this …
Persistent link: https://www.econbiz.de/10012924098
This paper investigates regulations for a bank that is covered by deposit insurance in a dynamic setting where bankruptcy entails social costs. Regulatory policy operates through rules governing the bank's capital structure and asset allocation that may be adjusted each period. Throughout, the...
Persistent link: https://www.econbiz.de/10013128500
banking research and sheds new light into the role of banks and their prudential regulation. Specifically, the results suggest …
Persistent link: https://www.econbiz.de/10011490576