Loading...
Please wait, while we are loading the content...
Similar Documents
Procyclicality in Basel II: Can we treat the disease without killing the patient?
| Content Provider | Semantic Scholar |
|---|---|
| Author | Gordy, Michael B. Howells, B. W. |
| Copyright Year | 2006 |
| Abstract | Abstract The debate over the potential procyclicality of bank capital requirements under Basel II has focused overwhelmingly on peak-to-trough variation in minimum regulatory requirements. In this paper, we re-examine the problem from the perspective of market discipline. First, we show that the marginal impact of introducing Basel II depends strongly on the extent to which market discipline leads banks to vary lending standards procyclically in the absence of binding regulation. Second, we evaluate policy options not only by their efficacy in dampening cyclicality in capital requirements, but equally by how well the information value of Basel II market disclosures is preserved. |
| Starting Page | 395 |
| Ending Page | 417 |
| Page Count | 23 |
| File Format | PDF HTM / HTML |
| DOI | 10.1016/j.jfi.2005.12.002 |
| Volume Number | 15 |
| Alternate Webpage(s) | http://www.bis.org/bcbs/events/rtf04gordy_howells.pdf |
| Alternate Webpage(s) | https://www.bis.org/bcbs/events/rtf04gordy_howells.pdf |
| Alternate Webpage(s) | https://doi.org/10.1016/j.jfi.2005.12.002 |
| Language | English |
| Access Restriction | Open |
| Content Type | Text |
| Resource Type | Article |
