Guangling (Dave) Liu; Seeiso, Nkhahle E. - Economic Research Southern Africa (ERSA) - 2011
This paper studies the impacts of bank capital regulation on business cycle fluctuations. To do so, we adopt the … presence of credit market frictions and bank capital regulation, the liquidity premium effect further ampliflies the financial … external finance premium rise much more if the minimum bank capital requirement increases, which in turn, amplify the response …