Benefits and Costs of Bank Capital /

The appropriate level of bank capital and, more generally, a bank's capacity to absorb losses, has been at the core of the post-crisis policy debate. This paper contributes to the debate by focusing on how much capital would have been needed to avoid imposing losses on bank creditors or resorti...

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Autor principal: Dagher, Jihad
Altres autors: Dell'Ariccia, Giovanni, Laeven, Luc, Ratnovski, Lev
Format: Revista
Idioma:English
Publicat: Washington, D.C. : International Monetary Fund, 2016.
Col·lecció:Staff Discussion Notes; Staff Discussion Notes ; No. 2016/004
Accés en línia:Full text available on IMF
Descripció
Sumari:The appropriate level of bank capital and, more generally, a bank's capacity to absorb losses, has been at the core of the post-crisis policy debate. This paper contributes to the debate by focusing on how much capital would have been needed to avoid imposing losses on bank creditors or resorting to public recapitalizations of banks in past banking crises. The paper also looks at the welfare costs of tighter capital regulation by reviewing the evidence on its potential impact on bank credit and lending rates. Its findings broadly support the range of loss absorbency suggested by the Financial Stability Board (FSB) and the Basel Committee for systemically important banks.
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Descripció física:1 online resource (38 pages)
Format:Mode of access: Internet
ISSN:2617-6750
Accés:Electronic access restricted to authorized BRAC University faculty, staff and students