the world. In this essay, I examine one of the principle new approaches to regulation – regulating macro prudential risk …

In this policy brief, we explain the fundamentals of risk-based capital (RBC) regulation and discuss some potential … shortcomings of this system. We propose that the Fed end its use of RBC regulation and return to the use of simple capital ratios …

the effects of banking regulation on macroeconomic dynamics. In particular, we study the overall credit exposure and the … overall exposure for banking stability, even if both features are very important. We show that a too tight regulation is …

This paper evaluates the effectiveness of risk-based capital (RBC) regulation and challenges some evidence from the …

Risk-based capital (RBC) ratios are an important component of US banking regulation, yet empirical evidence on the … effectiveness of RBC regulation has been mixed. Avery and Berger (1991) find that the RBC ratio improves upon the standard capital … RBC ratio. The results have significant implications for US banking regulation …

mission of identifying and containing risk in the financial system. Prudential regulation, the principal tool at the disposal … supervision has become policymakers' regulation of choice, to the point where it is now employed in the oversight and regulation …” — I argue that it is unlikely that prudential-style regulation, dependent as it is on the planning of a central regulator …

system of capital regulation that addresses these needs by making changes to all three pillars of bank regulation: only …

The fractional reserve theory of money creation only considers the reserve requirement but ignores prudential … regulation. We find that in addition to the concerned minimum required ratio, the banking system's liquidity and equity positions …