Why banks hold capital in excess of regulatory requirements:The role of market discipline

Alexander, Samuel K.
October 2004
Journal of International Banking Regulation;Oct2004, Vol. 6 Issue 1, p6
Academic Journal
Examines the consequences of bank capital which are driven by market forces for financial regulation. Reasons banks hold excess capital; Evidence suggesting that bank capital is determined by market forces and not by regulatory requirements; Recommendations.


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