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Bank Leverage, Capital Requirements and the Implied Cost of (Equity) Capital

Schmidt, Christian - 2020

%. When using the 2011 EBA capital exercise as a quasi-natural experiment to identify the impact of capital regulation on bank …

Persistent link: https://www.econbiz.de/10012850449

Banking reform

Jackson, Patricia; Davies, Howard; Miles, David; … - SUERF Conference on Banking Reform <2015, London>; … - 2016

On 3 December EY hosted a SUERF conference on banking reform with Sir Howard Davies, the Chairman of RBS, and Dame Colette Bowe, the Chairman of the Banking Standards Board, as the two keynote speakers. Professor David Miles (Imperial College) gave the SUERF 2015 Annual Lecture on Capital and...

Persistent link: https://www.econbiz.de/10011554963

Do Strict Capital Requirements Raise the Cost of Capital? Bank Regulation, Capital Structure, and the Low Risk Anomaly

Baker, Malcolm - 2015

Traditional capital structure theory predicts that reducing banks' leverage reduces the risk and cost of equity but does not change the weighted average cost of capital, and thus the rates for borrowers. We confirm that the equity of better-capitalized banks has lower beta and idiosyncratic...

Persistent link: https://www.econbiz.de/10013026425

Estimating the Impact of Higher Capital Requirements on the Cost of Equity : An Empirical Study of European Banks

Toader, Oana - 2015

The new regulatory framework imposes an increase in capital requirements for banks. Although core capital (equity) is more expensive than other liabilities (debt), it strengthens banks' stability and improves its loss-absorbing capacity. In this paper, we investigate the link between...

Persistent link: https://www.econbiz.de/10013034697

An Analysis of the Potential Impact of Heightened Capital Requirements on Banks’ Cost of Capital

Mantecon, Tomas - 2020

Critics of recent regulation to increase minimum bank capital requirements contend that this policy will increase the …

Persistent link: https://www.econbiz.de/10012837689

The Real Effects of Higher Capital Requirements : Evidence from Danish Firm-Level Data

Jensen, Thais - 2015

increase to the minimum capital requirement of a firm's primary bank is associated with 3 percent less borrowing, relative to … firms not facing increased capital requirements to their primary bank. While firm borrowing is sensitive to capital … requirements of their primary bank, I find, on average, no material effect on firm's assets growth as firms are able to substitute …

Persistent link: https://www.econbiz.de/10013035174

The effects of capital requirements on good and bad risk-taking

Pancost, N. Aaron; Robatto, Roberto - 2019

We study optimal capital requirement regulation in a dynamic quantitative model in which nonfinancial firms, as well as households, hold deposits. Firms hold deposits for precautionary reasons and to facilitate the acquisition of production inputs. Our theoretical analysis identifies a novel...

Persistent link: https://www.econbiz.de/10012132611

The cost of bank regulatory capital

Plosser, Matthew C.; Santos, João A. C. - 2018

of bank regulatory capital. Our results show that following Basel I, undrawn fees and all-in-drawn credit spreads on …

Persistent link: https://www.econbiz.de/10011868462

The Pass-Through of Bank Capital Requirements to Corporate Lending Spreads

Bichsel, Robert - 2019

This paper studies the impact of higher bank capital requirements on corporate lending spreads. We conduct an empirical … analysis using granular bank- and loan-level data for Switzerland. Overall, we find a positive relationship between capital …

Persistent link: https://www.econbiz.de/10012869586

Banks' capital surplus and the impact of additional capital requirements

Malovaná, Simona - 2017

Banks in the Czech Republic maintain their regulatory capital ratios well above the level required by their regulator. This paper discusses the main reasons for this capital surplus and analyses the impact of additional capital requirements stemming from capital buffers and Pillar 2 add-ons on...

Persistent link: https://www.econbiz.de/10011763804