Today's regulatory rules, especially the easily-manipulated measures of regulatory capital, have led to costly bank … failures. We design a robust regulatory system such that (i) bank losses are credibly borne by the private sector (ii …) systemically important institutions cannot collapse suddenly; (iii) bank investment is counter-cyclical; and (iv) regulatory …

lacking empirical support.We conclude that bank equity is not socially expensive, and that high leverage at the levels allowed …

This paper reviews the cost-benefit analysis, or “regulatory impact analysis” (RIA), in US bank regulators’ risk …-based capital (RBC) rule proposals. We review the principles of cost-benefit analysis and its application by US bank regulators. We … RBC rules and related rules on bank liquidity. We find that nine of the 27 rules include RIAs. Five of the RIAs claim the …

(Mixed Adjustment Indicator) that is introduced to ensure an appropriate estimation of expected and unexpected losses. The …

-party investors increase the insolvency risk of banks. This is particularly likely if a bank sells the senior tranche and retains a …

incentives, risk management models and procedures, conflicts of interest and bank strategies. Their perspectives are quite …