EconPapers    
Economics at your fingertips  
 

Basel Accord and Financial Intermediation: The Impact of Policy

Martin Berka () and Christian Zimmermann ()

Working Paper series from Rimini Centre for Economic Analysis

Abstract: This paper studies loan activity in a context where banks must follow Basel Accord-type rules and acquire financing from households. Loan activity typically decreases when entrepreneurs' investment returns decline, and we study which type of policy could reinvigorate an economy in a trough. We find that active monetary policy increases loan volume even when the economy is in good shape; introducing active capital requirement policy can be effective as well if it implies tightening of regulation in bad times. This is performed with an heterogeneous agent economy with occupational choice, financial intermediation and aggregate shocks to the distribution of entrepreneurial returns.

Keywords: Bank Capital Channel; Capital Requirements; Basel Accord; Occupational Choice; Bankruptcy; Credit Crunch (search for similar items in EconPapers)
JEL-codes: E44 E22 G28 E58 (search for similar items in EconPapers)
Date: 2012-01
References: View references in EconPapers View complete reference list from CitEc
Citations Track citations by RSS feed

Downloads: (external link)
http://www.rcea.org/RePEc/pdf/wp04_12.pdf (application/pdf)

Related works:
Working Paper: Basel Accord and Financial Intermediation: The Impact of Policy (2012) Downloads
Working Paper: Basel Accord and financial intermediation: the impact of policy (2011) Downloads
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:rim:rimwps:04_12

Access Statistics for this paper

More papers in Working Paper series from Rimini Centre for Economic Analysis Contact information at EDIRC.
Bibliographic data for series maintained by Marco Savioli ().

 
Page updated 2018-09-25
Handle: RePEc:rim:rimwps:04_12