Capital Regulation: How Much Capital is Needed?

Mark Carey

Chapter 8 in Achieving Financial Stability:Challenges to Prudential Regulation, 2017, pp 93-102 from World Scientific Publishing Co. Pte. Ltd.

Abstract: Admati and Hellwig (2013) have done a service by placing the question of the appropriate level of prudential bank capital requirements front-and-center. However, their claim that a 20 percent leverage ratio is the appropriate level of capital requirements is not convincing. As argued by Aiyar et al. (2015), Admati and Hellwig’s analysis rests on a supposition that Modigliani–Miller holds for banks…

Keywords: Money and Banking; International Banking; Financial Instititions; Banks; Regulations; Compliance; Financial Crisis; Great Financial Crisis 2008; Microprudential; Macroprudential; Financial Stability (search for similar items in EconPapers)
JEL-codes: E50 (search for similar items in EconPapers)
Date: 2017
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Citations: View citations in EconPapers (1)

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