In this paper Basel regulation is modeled in Dynamic Stochastic General Equilibrium (DSGE) framework. For this purpose, using data from 1981-2017 for Iran, capital adequacy as an importance regulation is modeled. Results show Basel regulation has procyclical effect. According to the results of the model and according to the realities of economy and banking system of Iran, in recession, lending ...

Stefan Legel, Jürgen König, Guido Burkard, 4 and Gerd Schön Institut für Theoretische Festkörperphysik and DFG-Center for Functional Nanostructures (CFN), Universität Karlsruhe, 76128 Karlsruhe, Germany Institut für Theoretische Physik III, Ruhr-Universität Bochum, 44780 Bochum, Germany Department of Physics and Astronomy, University of Basel, Klingelbergstrasse 82, CH-4056 Basel, Switzerland I...

© 2020 Board of Trustees the University Illinois This study examines whether capital requirements under Basel III are effective in enhancing profitability and efficiency banking sector. Drawing on a sample largest commercial banks from UK Australia over period 2000 to 2019, we employ FMOLS (Fully Modified OLS) DOLS (Dynamics estimation approaches. The results indicate that stricter ratio increa...