International Prudential Regulation, Regulatory Risk and Cost of Bank Capital
We define regulatory risk as regulation that leads to an increase in the cost of capital for a regulated firm. In a general equilibrium setting, scholars have shown that uniform increases in capital requirements lead to an increase in the cost of capital. We extend their model to show that when regu...
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| Format: | Article |
| Language: | English |
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Universiti Utara Malaysia
2007
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| Online Access: | http://repo.uum.edu.my/25098/1/IJBF%205%201%202007%2027%2058.pdf http://repo.uum.edu.my/25098/ http://ijbf.uum.edu.my/index.php/previous-issues/135-the-international-journal-of-banking-and-finance-ijbf-vol-5-no-1-2008 |
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