Macroeconomic Shocks and Banking Regulation

Material TypeArticleLanguageEnglish
TitleMacroeconomic Shocks and Banking Regulation Author(S)MATHIAS DEWATRIPONT (Author)
Abstract  The recent crisis has brought to the fore the cyclical properties of banking regulation. Countercyclical buffers and enhanced capital requirements meant to stabilize banks’ balance sheets across the cycle are not costless, and a delicate balance needs to be reached between providing incentives to generate value and discouraging excessive risk taking. The paper develops a model in which, in contrast with Modigliani–Mille ...Paginationp237–254
SubjectEconomicsDescriptorsEconomics
Journal TitleJournal of Money, Credit, and Banking  
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