Bank regulation under nonbinding capital
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Sarah B. Kendall
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Article
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1992
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Springer
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English
โ 629 KB
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