Bank Capital: A Regulation Perspective
β Scribed by Anthony M. Santomero
- Book ID
- 124942452
- Publisher
- Financial Management Association International (FMA)
- Year
- 1976
- Tongue
- English
- Weight
- 951 KB
- Volume
- 5
- Category
- Article
- ISSN
- 0046-3892
- DOI
- 10.2307/3665460
No coin nor oath required. For personal study only.
π SIMILAR VOLUMES
We consider a model of optimal bank closure rules (cum capital replenishment by banks), with Poisson-distributed audits of the bank's asset value by the regulator, with the goal of eliminating (ameliorating) the incentives of levered bank shareholders=managers to take excessive risks in their choice
A one-period model of bank equity is presented in which the end of the period can be interpreted as the next regulatory examination. A capital guideline is in place that may or may not be met as the values of the bank's assets and liabilities fluctuate during the period. If the guideline is not met