Add to ORKGEmpirical evidence suggests that banks hold capital in excess of regulatory mini-mums. This did not prevent the crisis and underlines the importance of understanding bank capital determination. Market discipline is one of the forces that induces banks to hold positive capital. The literature has focused on the liability side. We develop a simple theory based on monitoring to show that discipline from the asset side can also be important. In perfectly competitive markets, banks can find it optimal to use costly capital rather than the interest rate on the loan to commit to monitoring because it allows higher borrower surplus
© 2014 Xin Yi TanThe 2007/08 financial crisis reignited debates on what is a socially optimal capita...
Traditional capital structure theory in frictionless and efficient markets predicts that reducing ba...
Policy debate with regard to financial intermediaries has focused on whether, and to what extent, go...
Empirical evidence suggests that banks hold capital in excess of regulatory minimums. This did not p...
Empirical evidence suggests that banks hold capital in excess of regulatory min-imums. This did not ...
Empirical evidence suggests that banks hold capital in excess of regulatory minimums. This did not p...
It is commonly believed that equity finance for banks is more costly than deposits. This suggests th...
Market discipline for financial institutions can be imposed not only from the liability side, as has...
Although bank capital regulation permits a bank to choose freely between equity and subordinated deb...
Using a sample of European commercial banks over the period 1993-2006, we show that market disciplin...
We assess how capital regulation interacts with the degree of competitiveness of the banking industr...
We argue that accounting for the behavior of firms and markets is important for understanding the ex...
Improving commercial bank capital requirements has been a top priority on the regulatory agenda sinc...
In this dissertation we investigate different aspects of capital regulations and their impact on the...
Minimum capital requirement regulation forces banks to refund a substantial amount of their investme...
© 2014 Xin Yi TanThe 2007/08 financial crisis reignited debates on what is a socially optimal capita...
Traditional capital structure theory in frictionless and efficient markets predicts that reducing ba...
Policy debate with regard to financial intermediaries has focused on whether, and to what extent, go...
Empirical evidence suggests that banks hold capital in excess of regulatory minimums. This did not p...
Empirical evidence suggests that banks hold capital in excess of regulatory min-imums. This did not ...
Empirical evidence suggests that banks hold capital in excess of regulatory minimums. This did not p...
It is commonly believed that equity finance for banks is more costly than deposits. This suggests th...
Market discipline for financial institutions can be imposed not only from the liability side, as has...
Although bank capital regulation permits a bank to choose freely between equity and subordinated deb...
Using a sample of European commercial banks over the period 1993-2006, we show that market disciplin...
We assess how capital regulation interacts with the degree of competitiveness of the banking industr...
We argue that accounting for the behavior of firms and markets is important for understanding the ex...
Improving commercial bank capital requirements has been a top priority on the regulatory agenda sinc...
In this dissertation we investigate different aspects of capital regulations and their impact on the...
Minimum capital requirement regulation forces banks to refund a substantial amount of their investme...
© 2014 Xin Yi TanThe 2007/08 financial crisis reignited debates on what is a socially optimal capita...
Traditional capital structure theory in frictionless and efficient markets predicts that reducing ba...
Policy debate with regard to financial intermediaries has focused on whether, and to what extent, go...