Gersbach, Hans; Hahn, Volker - 2009
regulatory framework. In addition, we argue that banking-on-the-average rules ensure the build-up of bank equity capitals in … equity capital of its peers. Such bankingon- the-average rules are transparent and could also be combined with the current … system, we show that a banking-on-the-average framework can deliver the socially optimal solution because it induces banks to …