Capital Requirements and Credit Rationing

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Itai Agur;
  • Subject: Rationing; Capital requirements; Regulation; Wholesale finance; Deposit Insurance
    • jel: jel:G21 | jel:G28

This paper analyzes the trade-off between financial stability and credit rationing that arises when increasing capital requirements. It extends the Stiglitz-Weiss model of credit rationing to allow for bank default. Bank capital structure then matters for lending incent... View more
  • References (28)
    28 references, page 1 of 3

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