because it reflects special liquidity benefits of bank debt. Even aside from neglecting the systemic damage to the economy … benefits. Contrary to claims in the literature that “equity is expensive” and that regulation requiring more equity in the … funding mix entails costs to society, such regulation actually helps create useful commitment for banks to avoid the …

it reflects special liquidity benefits of bank debt. Even aside from neglecting the systemic damage to the economy that …. Contrary to claims in the literature that "equity is expensive" and that regulation requiring more equity in the funding mix … entails costs to society, such regulation actually helps create useful commitment for banks to avoid the inefficiently high …

Bank's (2013) database covering various aspects of bank regulation. Using multiple explorative factor analysis, we identify …This paper identifies the main dimensions of capital regulation. We use survey data from 142 countries from the World … two main dimensions of capital regulation: complexity of capital regulation and stringency of capital regulation. We show …

empirical support. We conclude that bank equity is not socially expensive, and that high leverage at the levels allowed, for … challenges are addressed, capital regulation can be a powerful tool for enhancing the role of banks in the economy. …

analysis is relevant to the debate on bank capital regulation, and complements Admati et al. (2010). In that paper we argued … for assessing regulation. Other arguments made to support claims that "equity is expensive" are flawed. Like reduction in … subsidies, the effects of leverage reduction on bank managers or shareholders do not represent a social cost. In fact, we show …

Capital regulation is critical to address distortions and externalities from intense conflicts of interest in banking … and from the failure of markets to counter incentives for recklessness. The approaches to capital regulation in Basel III …

to discipline bank managers who would otherwise make suboptimal or wasteful investment decisions. We propose a way to …

lacking empirical support.We conclude that bank equity is not socially expensive, and that high leverage at the levels allowed … remaining challenges are addressed, capital regulation can be a powerful tool for enhancing the role of banks in the economy …

. -- capital regulation ; financial institutions ; capital structure ; "too big to fail" ; systemic risk ; bank equity ; contingent … disciplining role are based on inadequate theory lacking empirical support. We conclude that bank equity is not socially expensive … remaining challenges are addressed, capital regulation can be a powerful tool for enhancing the role of banks in the economy …