College) gave the SUERF 2015 Annual Lecture on Capital and Banks. The conference focused on core aspects of banking reform …: the amount of capital required, the design of capital requirements (complexity versus simplicity), proportionate … regulation, recovery and resolution, and risk culture. …

attitude and overleveraging by the trading desk. We trace the impact of monetary policy and market innovations on bank behavior … regulations that target bank governance can mitigate possible rogue trading and the overleveraging problem. …

Tier 1 capital ratio) could increase bank lending spreads by about 50 basis points. The estimated effects on GDP growth … point per annum. Economic output is mainly affected by an increase in bank lending spreads as banks pass a rise in bank … funding costs, due to higher capital requirements, to their customers. To meet the capital requirements effective in 2015 (4 …