Kobayakawa, Shuji - Nihon-Ginkō <Tōkyō>; London School of Economics and … - 1998
The purpose of this paper is to present a framework forincentive-compatible regulation that would enable regulatorsto ensure that riskier banks maintain higher capitalholdings.Under the precommitment approach, a bankannounces the appropriate level of capital that covers themaximum value of...