Banks need to keep both capital and liquidity against unforeseen events.During the early-mid nineteenth century, there were a number of banking crises. Banks responded by holding higher levels of capital.An analysis of bank capital shows that they adjusted their capital ratios according to the...

Swathes of complex capital regulation have made banking riskierExecutive summary:Banks need to keep both capital and liquidity against unforeseen events.During the early-mid nineteenth century, there were a number of banking crises. Banks responded by holding higher levels of capital.An analysis...