Theories of bank behavior under capital regulation

Journal of Banking and Finance

Volumn 31, Issue 12, 2007, Pages 3680-3697

  VanHoose, David ^a  

^a BAYLOR UNIVERSITY   (United States)

Author keywords

Bank capital requirements; Bank regulation

Indexed keywords

EID: 36048951510     PISSN: 03784266     EISSN: None     Source Type: Journal    
DOI: 10.1016/j.jbankfin.2007.01.015     Document Type: Article

References (50)

1. Almazan A. A model of competition in banking: Bank capital versus expertise. Journal of Financial Intermediation 11 (2002) 87-121
2. Berger A., Herring R., and Szego G. The role of capital in financial institutions. Journal of Banking and Finance 19 (1995) 393-430
3. Besanko D., and Kanatas G. The regulation of bank capital: Do capital standards promote bank safety?. Journal of Financial Intermediation 5 (1996) 160-183
4. Blum J. Do capital adequacy requirements reduce risks in banking?. Journal of Banking and Finance 23 (1999) 755-771
5. Boot, Arnoud, Marinc, Matej, 2006. Competition and entry in banking: Implications for Stability and Capital Regulation. Tinbergen Institute Discussion Paper TI 2006-015/2, January 22.
6. Bradley M., Wambeke C., and Whidbee D. Risk weights, risk-based capital, and deposit insurance. Journal of Banking and Finance 15 (1991) 875-893
7. Calem P., and Rob R. The impact of capital-based regulation on bank risk-taking. Journal of Financial Intermediation 8 (1999) 317-352
8. Calomiris C., and Kahn C. The role of demandable debt in structuring optimal banking arrangements. American Economic Review 81 (1991) 497-513
9. Campbell T., Chan Y.-S., and Marino A. An incentive-based theory of bank regulation. Journal of Financial Intermediation 2 (1992) 255-276
10. Carey M. A guide to choosing absolute bank capital requirements. Journal of Banking and Finance 26 (2002) 929-951
11. Cooper R., and Ross T. Bank runs, deposit insurance, and capital requirements. International Economic Review 43 (2002) 55-71
12. Cordell L., and King K.K. A market evaluations of the risk-based capital standards for the US financial system. Journal of Banking and Finance 19 (1995) 531-562
13. Cuoco D., and Liu H. An analysis of VaR-based capital requirements. Journal of Financial Intermediation 15 (2006) 362-394
14. Decamps J.-P., Rochet J.-C., and Roger B. The three pillars o Basel II: Optimizing the mix. Journal of Financial Intermediation 13 (2004) 132-155
15. Diamond D. Monitoring and regulation: The choice between bank loans and directly placed debt. Journal of Political Economy 99 (1991) 689-721
16. Diamond D. Financial intermediation and delegated monitoring. Review of Economic Studies 51 (1984) 393-414
17. Diamond D., and Dybvig P. Bank runs, deposit insurance, and liquidity. Journal of Political Economy 91 (1983) 401-419
18. Diamond D., and Rajan R. Liquidity risk, liquidity creation, and financial fragility: A theory of banking. Journal of Political Economy 109 (2001) 287-327
19. Diamond D., and Rajan R. A theory of bank capital. Journal of Finance 55 (2000) 2431-2465
20. Dowd K. Bank capital adequacy versus deposit insurance. Journal of Financial Services Research 17 (2000) 7-15
21. Estrella A. Bank capital and risk: Is voluntary disclosure enough?. Journal of Financial Services Research 26 (2004) 145-160
22. Flannery M. Capital regulation and insured banks' choice of individual loan default risks. Journal of Monetary Economics 24 (1989) 235-258
23. Furlong F., and Keeley M. Capital regulation and bank risk-taking: A note. Journal of Banking and Finance 13 (1989) 883-891
24. Gennotte G., and Pyle D. Capital controls and bank risk. Journal of Banking and Finance 15 (1991) 805-824
25. Gjerde Ø., and Semmen K. Risk-based capital requirements and bank portfolio risk. Journal of Banking and Finance 19 (1995) 1159-1173
26. Gordy M. A risk-factor model foundation for ratings-based bank capital rules. Journal of Financial Intermediation 12 (2003) 199-232
27. Hellmann T., Murdock K., and Stiglitz J. Liberalization, moral hazard in banking, and prudential regulation: Are capital requirements enough?. American Economic Review 90 (2000) 147-165
28. Holmström B., and Tirole J. Financial intermediation, loanable funds, and the real sector. Quarterly Journal of Economics 112 (1997) 663-691
29. Jackson, Patricia, Furfine, Craig, Groeneveld, Hans, Hancock, Diana, Jones, David, Perraudin, William, Radecki, Lawrence, Yoneyama, Masao., 1999. Capital requirements and bank behavior: The impact of the Basel accord. Basel Committee on Banking Supervision, Working Paper No. 1, April.
30. Jeitschko T., and Jeung S.D. Incentives for risk-taking in banking: A unified approach. Journal of Banking and Finance 29 (2005) 759-777
31. Kahane Y. Capital adequacy and the regulation of financial intermediaries. Journal of Banking and Finance 1 (1977) 207-218
32. Keeley M., and Furlong F. A reexamination of the mean-variance analysis of bank capital regulation. Journal of Banking and Finance 14 (1990) 69-84
33. Kim D., and Santomero A. Risk in banking and capital regulation. Journal of Finance 43 (1988) 1219-1233
34. Koehn M., and Santomero A. Regulation of bank capital and portfolio risk. Journal of Finance 35 (1980) 1235-1244
35. Kopecky K., and VanHoose D. Capital regulation, heterogeneous monitoring costs, and aggregate loan quality. Journal of Banking and Finance 30 August 2006 (2006) 2235-2255
36. Kupiec P. Internal model-based capital regulation and bank risk-taking incentives. Journal of Derivatives 11 (2004) 33-42
37. Lam C., and Chen A. Joint effects of interest rate deregulation and capital requirements on optimal bank portfolio adjustments. Journal of Finance 40 (1985) 563-575
38. Marini F. Bank insolvency, deposit insurance, and capital adequacy. Journal of Financial Services Research 24 (2003) 67-78
39. Milne A. Bank capital regulation as an incentive mechanism: Implications for portfolio choice. Journal of Banking and Finance 26 (2002) 1-23
40. Morrison A., and White L. Crises and capital requirements in banking. American Economic Review 95 (2005) 1548-1572
41. Pattison J. International financial cooperation and the number of adherents: The Basel committee and capital regulation. Open Economies Review 17 (2006) 443-458
42. Repullo R. Capital requirements, market power, and risk-taking in banking. Journal of Financial Intermediation 13 (2004) 156-182
43. Repullo R., and Suarez J. Loan pricing under Basel capital requirements. Journal of Financial Intermediation 13 (2004) 496-521
44. Rochet J.-C. Capital requirements and the behavior of commercial banks. European Economic Review 36 (1992) 1137-1178
45. Santos J. Bank capital regulation in contemporary banking theory: A review of the literature. Financial Markets, Institutions, and Instruments 10 (2001) 41-84
46. Santos J. Bank capital and equity investment regulations. Journal of Banking and Finance 23 (1999) 1095-1120
47. Stolz, Stéphanie., 2002. The relationship between bank capital, risk-taking, and capital regulation: A review of the literature. Manuscript, Kiel Institute for World Economics.
48. Thakor A. Capital requirements, monetary policy, and aggregate bank lending: Theory and empirical evidence. Journal of Finance 51 (1996) 279-324
49. VanHoose, David, 2006. Bank behavior under capital regulation: What does the academic literature tell us? Networks Financial Institute Working Paper 2006-WP-04.
50. Wang, Lang, 2005. Bank capital requirements and the effectiveness of monetary policy. Manuscript, Peking University.