Risky Bank Lending and Optimal Capital Adequacy Regulation /

We study the welfare properties of a New Keynesian monetary economy with an essential role for risky bank lending. Banks lend funds deposited by households to a financial accelerator sector, and face penalties for maintaining insufficient net worth. The loan contract specifies an unconditional lendi...

Descrición completa

Detalles Bibliográficos
Autor Principal: Benes, Jaromir
Outros autores: Kumhof, Michael
Formato: Revista
Idioma:English
Publicado: Washington, D.C. : International Monetary Fund, 2011.
Series:IMF Working Papers; Working Paper ; No. 2011/130
Acceso en liña:Full text available on IMF
LEADER 01738cas a2200253 a 4500
001 AALejournalIMF007220
008 230101c9999 xx r poo 0 0eng d
020 |c 5.00 USD 
020 |z 9781455259359 
022 |a 1018-5941 
040 |a BD-DhAAL  |c BD-DhAAL 
100 1 |a Benes, Jaromir. 
245 1 0 |a Risky Bank Lending and Optimal Capital Adequacy Regulation /  |c Jaromir Benes, Michael Kumhof. 
264 1 |a Washington, D.C. :  |b International Monetary Fund,  |c 2011. 
300 |a 1 online resource (27 pages) 
490 1 |a IMF Working Papers 
500 |a <strong>Off-Campus Access:</strong> No User ID or Password Required 
500 |a <strong>On-Campus Access:</strong> No User ID or Password Required 
506 |a Electronic access restricted to authorized BRAC University faculty, staff and students 
520 3 |a We study the welfare properties of a New Keynesian monetary economy with an essential role for risky bank lending. Banks lend funds deposited by households to a financial accelerator sector, and face penalties for maintaining insufficient net worth. The loan contract specifies an unconditional lending rate, which implies that banks can make loan losses. Their main response is to raise lending rates to rebuild net worth. Prudential rules that adjust minimum capital adequacy requirements in response to loan losses significantly increase welfare. But the gains from eliminating limited liability and moral hazard would be an order of magnitude larger. 
538 |a Mode of access: Internet 
700 1 |a Kumhof, Michael. 
830 0 |a IMF Working Papers; Working Paper ;  |v No. 2011/130 
856 4 0 |z Full text available on IMF  |u http://elibrary.imf.org/view/journals/001/2011/130/001.2011.issue-130-en.xml  |z IMF e-Library