1. Bank Capital Requirements, Business Cycle Fluctuations and the Basel Accords: A Synthesis

  1. Stuart Sayer
  1. Ines Drumond

Published Online: 6 JUN 2011

DOI: 10.1002/9781444391602.ch1

Issues in Finance: Credit, Crises and Policies

Issues in Finance: Credit, Crises and Policies

How to Cite

Drumond, I. (2011) Bank Capital Requirements, Business Cycle Fluctuations and the Basel Accords: A Synthesis, in Issues in Finance: Credit, Crises and Policies (ed S. Sayer), Wiley-Blackwell, Oxford, UK. doi: 10.1002/9781444391602.ch1

Editor Information

  1. University of Edinburgh, UK

Author Information

  1. CEF.UP and Faculdade de Economia, Universidade do Porto and GPEARI – MFAP, Portugal

Publication History

  1. Published Online: 6 JUN 2011
  2. Published Print: 7 JAN 2011

ISBN Information

Print ISBN: 9781444334012

Online ISBN: 9781444391602

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Keywords:

  • bank capital requirements, business cycle fluctuations - and Basel Accords;
  • Basel Committee on Banking Supervision (BCBS), in 2004 releasing - new Basel Capital Accord, fostering stability;
  • Basel II, and central changes - sensitivity of a bank's capital requirement to risk of its assets;
  • amount of capital, banks to hold - connected to riskiness of underlying assets;
  • banking regulation, and procyclical effects of Basel II - special interest, financial crisis of 2007 in US subprime market;
  • banks, and critical role in financial crisis - leveraged and regulated institutions;
  • BCBS, supervisory and regulatory approaches - mitigating procyclicality in financial system, Economic and Financial Affairs Council (ECOFIN);
  • capital requirements - within banking regulation;
  • capital standards, instrument - promoting optimal governance of banks;
  • bank capital requirements - and business cycle fluctuation relationship

Summary

This chapter contains sections titled:

  • Introduction

  • The Bank Capital Channel: Related Theoretical Literature

  • Capital Requirements within Banking Regulation

  • Basel II Capital Requirements and Procyclicality

  • Concluding Remarks

  • Acknowledgements

  • Notes

  • References