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23 août 2013
- handle: 10670/1.fu75kh
- halshs: halshs-00853701
info:eu-repo/semantics/OpenAccess
Mots-clés
Bank Leverage Leverage ratios Financial Instability Prudential Regulation E - Macroeconomics and Monetary Economics E - Macroeconomics and Monetary Economics/E.E5 - Monetary Policy, Central Banking, and the Supply of Money and Credit/E.E5.E51 - Money Supply • Credit • Money Multipliers E - Macroeconomics and Monetary Economics/E.E5 - Monetary Policy, Central Banking, and the Supply of Money and Credit/E.E5.E58 - Central Banks and Their Policies G - Financial Economics/G.G2 - Financial Institutions and Services/G.G2.G28 - Government Policy and Regulation G - Financial Economics/G.G2 - Financial Institutions and Services/G.G2.G21 - Banks • Depository Institutions • Micro Finance Institutions • MortgagesSujets proches
Standard of value Money stock Supply of money Quantity of money Banks, Central Central banking Central banks Banker's banksCiter ce document
Olivier Bruno et al., « Bank leverage, financial fragility and prudential regulation », HAL-SHS : économie et finance, ID : 10670/1.fu75kh
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Résumé
We analyse the determinants of banks' balance-sheet and leverage-ratio dynamics and their role in increasing financial fragility. Our results are twofold. First, we show that there is a value of bank's leverage that minimises financial fragility. Second, we show that this value depends on the overall business climate, the expected value of the collateral and the riskless interest rate. This result leads us to advocate the establishment of anadjustableleverage ratio, depending on economic conditions, rather than the fixed ratio provided for under the new Basel III regulation.