regulatory framework. In addition, we argue that banking-on-the-average rules ensure the build-up of bank equity capitals in … system, we show that a banking-on-the-average framework can deliver the socially optimal solution because it induces banks to …

regulatory framework. In addition, we argue that banking-on-the-average rules ensure the build-up of bank equity capitals in … system, we show that a banking-on-the-average framework can deliver the socially optimal solution because it induces banks to …