scholarly journals Fallacies, Irrelevant Facts, and Myths in the Discussion of Capital Regulation: Why Bank Equity is not Expensive

2011 ◽  
Author(s):  
Anat R. Admati ◽  
Peter M. DeMarzo ◽  
Martin F. Hellwig ◽  
Paul C. Pfleiderer
Keyword(s):  
Capital Regulation ◽  
Bank Equity

The Costs of Bank Equity Offerings in Response to Strengthened Capital Regulation

2014 ◽  
Author(s):  
Katsutoshi Shimizu ◽  
Peng Xu
Keyword(s):  
Capital Regulation ◽  
Equity Offerings ◽  
Bank Equity

scholarly journals On the money creation approach to banking

2021 ◽  
Author(s):  
Salomon Faure ◽  
Hans Gersbach
Keyword(s):  
Monetary Policy ◽  
Commercial Banks ◽  
Central Banks ◽  
Capital Regulation ◽  
Bank Deposits ◽  
Central Bank Money ◽  
Money Creation ◽  
Asset Purchases ◽  
Bank Equity ◽  
Bank Money

AbstractWe study today’s two-tier money creation and destruction system: Commercial banks create bank deposits (privately created money) through loans to firms or asset purchases from the private sector. Bank deposits are destroyed when households buy bank equity or when firms repay loans. Central banks create electronic central bank money (publicly created money or reserves) through loans to commercial banks. In a simple general equilibrium setting, we show that symmetric equilibria yield the first-best level of money creation and lending when prices are flexible, regardless of monetary policy and capital regulation. When prices are rigid, we identify the circumstances in which money creation is excessive or breaks down and the ones in which an adequate combination of monetary policy and capital regulation can restore efficiency. Finally, we provide a series of extensions and generalizations of the results.

Optimal Bank Interest Margin with Synergy Banking under Capital Regulation and Deposit Insurance: A Swaption Approach

2011 ◽  
Vol 14 (02) ◽  
pp. 327-346 ◽  
Author(s):  
Chuen-Ping Chang ◽  
Jyh-Horng Lin
Keyword(s):  
Mutual Fund ◽  
Opportunity Cost ◽  
Deposit Insurance ◽  
Retail Banking ◽  
Capital Regulation ◽  
Call Option ◽  
Risky Assets ◽  
Bank Equity ◽  
Model Bank ◽  
Interest Margin

The main purpose of this paper is to model bank spread behavior under capital regulation and deposit insurance. Comparative static results show that an increase in the capital-to-deposits ratio or the deposit insurance decreases the bank's interest margin or spread. It is also shown that an increase in the equity that implies its opportunity cost of the coupon rate on the fixed leg decreases the margin. Previous research on market-based evaluations of bank equity has modeled the bank as a narrowing banking firm with risky assets and insured liabilities. The equity of the bank is viewed as a call option on its risky assets. No attempt was made to explicitly analyze a synergy between lending and deposit-taking, and, in our view, the equity of the bank is viewed as a swap option on coupon bonds. Synergy banking, particularly in the return to retail banking, is important in distinguishing banks from other lenders such as finance companies and mutual fund institutions. These other lenders call for the breaking up of banks into separate lending and deposit-taking operations, respectively. Our findings provide an insight for synergy banking operations concerning regulated bank spread behavior in the return to retail banking.

Costs of Bank Equity Offerings in Response to Strengthened Capital Regulation

2015 ◽  
Author(s):  
Katsutoshi Shimizu ◽  
Peng Xu
Keyword(s):  
Capital Regulation ◽  
Equity Offerings ◽  
Bank Equity

Costs of Bank Equity Offerings in Response to Strengthened Capital Regulation

2014 ◽  
Author(s):  
Katsutoshi Shimizu ◽  
Peng Xu
Keyword(s):  
Capital Regulation ◽  
Equity Offerings ◽  
Bank Equity

scholarly journals Fallacies, Irrelevant Facts, and Myths in the Discussion of Capital Regulation: Why Bank Equity is Not Socially Expensive

2013 ◽  
Author(s):  
Anat R. Admati ◽  
Peter M. DeMarzo ◽  
Martin F. Hellwig ◽  
Paul C. Pfleiderer
Keyword(s):  
Capital Regulation ◽  
Bank Equity

Macroeconomic Cost Analysis of Enhanced Bank Capital Regulation

2018 ◽  
Vol 20 (4) ◽  
pp. 31-54
Author(s):  
Hyekyung Cha
Keyword(s):  
Cost Analysis ◽  
Capital Regulation ◽  
Bank Capital ◽  
Bank Capital Regulation

Capital Regulation with Heterogeneous Banks

2013 ◽  
Author(s):  
Andreas Barth ◽  
Christian Seckinger
Keyword(s):  
Capital Regulation

Capital Regulation and Product Market Outcomes

2018 ◽  
Author(s):  
Ishita Sen ◽  
David Humphry
Keyword(s):  
Product Market ◽  
Capital Regulation ◽  
Market Outcomes

Efficient Capital Regulation of US Bank Holding Companies: An Integrative Literature Review

2019 ◽  
Author(s):  
Sophia Velez ◽  
Michael Neubert ◽  
Daphne Halkias
Keyword(s):  
Literature Review ◽  
Capital Regulation ◽  
Bank Holding Companies ◽  
Holding Companies
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