[...]The most obvious possible, and undesirable,impact on bank behaviour of risk-weighted capital requirementsis that …

Bank supervisors have long recognized two types of shortcomingsin the Basle Accord’s risk-based capital (RBC …)framework. First, the regulatory measures of “capital” maynot represent a bank’s true capacity to absorb unexpectedlosses. Deficiencies …

Traditionally, regulation of banks has focused on the riskentailed in bank loans. Loans are typically nontradedassets …. In recent years, another component of bank assetshas become increasingly important: assets actively tradedin the … financial markets.1 These assets form the “tradingbook” of a bank, in contrast to the “banking book,” whichincludes the …

(after a certain period)exceeds the announced value, the bank is penalised. Thisframework creates the correct incentive for …

It is my pleasure to join President McDonough and our colleaguesfrom the Bank of Japan and the Bank of England ….Moreover, this conference comes at a most critical andopportune time. As you are aware, the current structure ofregulatory bank …

A large literature studies bank regulatory policies intendedto control moral hazard problems associated with … depositinsurance and optimal regulatory design. Much of theanalysis has focused on uniform bank capital requirements,risk-based capital ….All formal analyses employ highly simplifiedtreatments of an individual bank or banking system. Thisstudy is concerned with the …