Bank leverage, financial fragility and prudential regulation - HAL Accéder directement au contenu
Pré-publication, Document de travail Année : 2013

Bank leverage, financial fragility and prudential regulation

Résumé

We analyse the determinants of banks' balance-sheet and leverage-ratio dynamics and their role in increasing financial fragility. Our results are twofold. First, we show that there is a value of bank's leverage that minimises financial fragility. Second, we show that this value depends on the overall business climate, the expected value of the collateral and the riskless interest rate. This result leads us to advocate the establishment of anadjustableleverage ratio, depending on economic conditions, rather than the fixed ratio provided for under the new Basel III regulation.
Fichier principal
Vignette du fichier
Leverage.pdf ( 225.95 Ko ) Télécharger
Origine : Fichiers produits par l'(les) auteur(s)
Loading...

Dates et versions

halshs-00853701, version 1 (23-08-2013)

Identifiants

  • HAL Id : halshs-00853701 , version 1

Citer

Olivier Bruno, André Cartapanis, Eric Nasica. Bank leverage, financial fragility and prudential regulation. 2013. ⟨halshs-00853701⟩
231 Consultations
588 Téléchargements
Dernière date de mise à jour le 28/04/2024
comment ces indicateurs sont-ils produits

Partager

Gmail Facebook Twitter LinkedIn Plus