منابع مشابه
Bank Leverage Regulation and Macroeconomic Dynamics
Regulatory constraints on bank leverage have been at the center of many policy discussions recently. One important question to emerge from these discussions has been whether these regulations should be time-dependent and how they would interact with the business cycle. We analyze this question using a dynamic stochastic general equilibrium model with banks and bank capital. In the model, bank c...
متن کاملBank Size, Leverage, and Financial Downturns
I construct a macroeconomic model with a financial sector in which the severity of financial downturns depends on size differences in the banking sector and average bank leverage. In my model, a more concentrated banking sector deepens and prolongs financial downturns for two reasons: returns on assets decrease more, and banks sharply decrease the liquidity supply in the interbank market. Calib...
متن کاملReal interest rates, leverage, and bank risk-taking
Do low interest rate environments lead to greater bank risk-taking? We show that, when banks can adjust their capital structures, reductions in real interest rates lead to greater leverage and higher risk for any downward sloping loan demand function. However, if the capital structure is fixed, the effect depends on the degree of leverage: following a decrease in interest rates, well capitalize...
متن کاملThe Leverage Ratio, Risk-Taking and Bank Stability
Under the new Basel III banking regulations, a non-risk based leverage ratio will be introduced alongside the risk-based capital requirement. This move away from a solely risk-based capital framework has raised some concern of increased bank risk-taking; potentially offsetting any benefits from requiring highly leveraged banks to hold more capital. We address exactly this tradeoff between addit...
متن کاملSocial Choice and Welfare
ed/Indexed in: ABS Academic Journal Quality Guide, CSA Political Science & Government, CSA Sociological Abstracts, Current
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ژورنال
عنوان ژورنال: American Economic Review
سال: 2016
ISSN: 0002-8282
DOI: 10.1257/aer.p20161090