EconPapers    
Economics at your fingertips  
 

Capital Adequacy Requirements and Financial Frictions in a Neoclassical Growth Model

Miho Sunaga ()
Additional contact information
Miho Sunaga: Graduate School of Economics, Osaka University

No 17-21, Discussion Papers in Economics and Business from Osaka University, Graduate School of Economics

Abstract: I introduce nancial market friction into a neoclassical growth model. I consider a moral hazard problem between bankers and workers in the macroeconomic model. Using the model, this study analyzes how capital adequacy requirements for banks affect the economy. I show that strengthening capital adequacy requirements is desirable for an economy whose nancial market has not developed sufficiently. Regulatory authorities should pull up the minimum capital adequacy ratio in a country whose nancial market has not developed sufficiently. Moreover, there is no need to change the minimum cap- ital adequacy ratio in a country whose nancial market has developed sufficiently even if the economy experiences a recession.

Keywords: Capital adequacy requirements; Economic Growth; Financial Intermedi- aries; Macro-prudential policies (search for similar items in EconPapers)
JEL-codes: E44 G21 G28 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-ban, nep-cfn, nep-dge, nep-fdg and nep-mac
Date: 2017-07
References: View references in EconPapers View complete reference list from CitEc
Citations: Track citations by RSS feed

Downloads: (external link)
http://www2.econ.osaka-u.ac.jp/library/global/dp/1721.pdf (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:osk:wpaper:1721

Access Statistics for this paper

More papers in Discussion Papers in Economics and Business from Osaka University, Graduate School of Economics Contact information at EDIRC.
Bibliographic data for series maintained by Atsuko SUZUKI ().

 
Page updated 2019-04-04
Handle: RePEc:osk:wpaper:1721