This study models the impact of new capital regulations proposed under Basel III on bank profitability by constructing a stylized representative bank’s financial statements. We show that the higher cost associated with a one-percentage increase in the capital ratio can be recovered by...

This study models the impact of new capital regulations proposed under Basel III on bank profitability by constructing a stylized representative bank’s financial statements. We show that the higher cost associated with a one-percentage increase in the capital ratio can be recovered by...

The emergence of New Development Bank (NDB) on the global horizon, though beginning of a new international economic order, has indeed brought into focus several issues on to the debating table. This article provides a useful discussion on the different dimensions associated with the emerging entity.