We investigate the economic consequences of the implementation of a particular aspect of Basel III in the U.S. Specifically, the Basel III proposal and the corresponding U.S. rule (hereafter referred to as the removal of the AOCI filter) to make the inclusion of unrealized fair value gains and...

We investigate the economic consequences of the new regulatory requirement under Basel III to include unrealized fair value gains and losses on available-for-sale (AFS) securities in the calculation of regulatory capital. Regulators argue that such an inclusion would result in greater regulatory...

We investigate whether and how the shift from discretionary forward-looking provisioning to the restrictive incurred loss approach under International Financial Reporting Standards (IFRS) in the European Union (EU) affects the cross-country comparability and predictive ability of loan loss...