Category: regulation

The author derives new estimates of the likely economic losses both from banking crises and from increasing bank capital requirements. According to the paper, a socially optimal level of bank capital...

The author says that Basel 3 capital requirements are inadequate for several reasons. i. Required equity levels are much too low, ii. use of complex manipulable risk weights that ignore some risks...

The authors say that the rules for setting capital requirements need to be simpler, and resolution should be an essential part of the capital framework. They propose a new system...

The authors look at whether Basel 3 addresses excess leverage and default pressure resulting from contagion and counterparty risk effectively. They say that risk weighting and the use of internal models for determining...