In the European Union the statutory principle of the single market of the pertinent EU Treaties applies. Especially if national norms run contrary to the realisation of EU goals, the member states are required to act unitarily and coordinated. In particular, measures effecting the unequal...

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In the paper, we first investigate the impact of an increase in capital requirements on the equity risk (beta) of listed banks in France. We find that an increase in capital ratios reduces banks’ systematic risk. This leads to a decrease in shareholders’ required return on equity, providing...

This paper studies the effect of banks’ capitalization on banks’ Return on Equity (ROE). A debate has emerged on the costs for banks of the increase in capital requirements under Basel III. We bring empirical evidence on this issue by analyzing the effect of different capitalization measures...