Bank Capital and Financial Stability: An Economic Trade-Off or a Faustian Bargain?

By Anjan V. Thakor. 2014

196 citations recorded by the source corpus.

View Paper: https://www.semanticscholar.org/paper/938669c57bec025615f41c1741c30ff30c638fc3

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Citations in the corpus

The Rise of Shadow Banking: Evidence from Capital Regulation (2018, background): “In particular, Admati et al. (2013) and Thakor (2014) argue that financial institutions should be subject to significantly higher capital requirements in order to mitigate risk-shifting incentives and increase financial stability.”
The Financial Crisis of 2007–2009: Why Did It Happen and What Did We Learn? (2015, unknown): “Thakor (2014) discusses how higher bank capital reduces insolvency risk by attenuating asset-substitution moral hazard and strengthening the bank’s monitoring and screening incentives.”
Fintech and banking: What do we know? (2019, background): “Thakor (2014) discusses how equity capital attenuates incentive problems in banks.”
Bank Capital and Lending Relationships: Bank Capital and Lending Relationships (2017, unknown): “2010 ; Fahlenbrach , Prilmeier , and Stulz 2012 ) , some use book equity from the bank holding company ( Murfin 2012 ; Jayaranam and Thakor 2014 ) , some use tangible book equity and risk - adjusted regulatory ratios from the holding company ( Beltratti and Stulz 2012 ; Demirguc - Kunt ,…”
An Overview of Macroprudential Policy Tools (2014, unknown): “The literature on the effects of microprudentially motivated higher capital requirements, including Basel II, however, generally finds limited impacts on lending, essentially only some impact for weaker banks (Claessens 2014 and Thakor 2014 review).”
Dealer balance sheets and bond liquidity provision (2016, unknown): “Thakor (2014) provides a review of the literature on bank capital regulation.”
Bank overall financial strength: Islamic versus conventional banks (2017, background): “The idea that gains on one dimension must be potentially sacrificed on another dimension (i.e. trade-off) is central in the analysis of financial economics and bank management (Thakor, 2014).”