analysis is relevant to the debate on bank capital regulation, and complements Admati et al. (2010). In that paper we argued … 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 that …

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. …

connected issues, mainly incentives and market discipline, regulation, competition and shadow banking, and size and structure of …

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

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 …

In August 2007 the United Kingdom experienced its first bank run in over 140 years. Although Northern Rock was not a … particularly large bank (it was at the time ranked 7th in terms of assets) it was nevertheless a significant retail bank and a … limited by regulation largely to retail deposits and mortgages. Graphic television news pictures showed very long queues …

gesamtwirtschaftliche Entwicklung spielen. Dies gilt offenbar vor allem dann, wenn die Bankenregulierung schwach ist und Banken nicht …

regulation proposals in the Basel III framework with respect to this literature. A number of shortcomings in the current …

An important question in banking is how strict supervision affects bank lending and in turn local business activity … the thrift regulator (OTS) to analyze economic links between strict supervision, bank lending and business activity. We … capital but can also correct deficiencies in bank management and lending practices, leading to more lending and a reallocation …

countries. The European Central Bank (ECB), jointly with the Banking Supervision Committee (BSC), has an interest in monitoring …