Purpose – This chapter investigates the effect of capital requirement regulations, both national and those issued by the Basel Committee on Banking Supervision, on banks’ interest rate margins between loans and deposits. Higher capital requirements lead to higher margins, as banks pass this...

Over the past few decades, European multinational enterprises (MNEs) have been faced with a rapidly changing and difficult-to-predict international policy environment. Waves of privatisation, liberalisation and deregulation have alternated with periods of re regulation and institutional...