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Capital regulation, risk-taking and monetary policy: A missing link in the transmission mechanism?

โœ Scribed by Claudio Borio; Haibin Zhu


Book ID
119297399
Publisher
Elsevier Science
Year
2012
Tongue
English
Weight
600 KB
Volume
8
Category
Article
ISSN
1572-3089

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The EC's Capital Adequacy Directive (CAD) and the 1995 Basle Committee (BC) proposals are analysed as approaches to regulating market risk. We derive conditions under which the BC's proposal, namely supplementing a CAD-type standardized risk measurement framework with proprietary procedures subject