Skip to main content

Reconsidering bank capital regulation: a new combination of rules, regulators, and market discipline

Publication ,  Journal Article
Fullenkamp, C; Rochon, C
Published in: Journal of Economic Policy Reform
October 2, 2017

Despite revisions to bank capital standards, fundamental shortcomings remain: the rules for setting capital requirements need to be simpler, and resolution should be an essential part of the capital requirement framework.We propose a revised system of capital regulation that addresses these needs by making changes to all three pillars of bank regulation: only common equity should be recognized as regulatory capital, and risk weighting of assets should be abandoned; capital requirements should be assigned on an institution-by-institution basis according to a regulatory (s, S) approach developed in the paper; a standard for prompt, corrective action is incorporated into the (s, S) approach.

Duke Scholars

Published In

Journal of Economic Policy Reform

DOI

EISSN

1748-7889

ISSN

1748-7870

Publication Date

October 2, 2017

Volume

20

Issue

4

Start / End Page

343 / 359

Related Subject Headings

  • 4407 Policy and administration
  • 3801 Applied economics
  • 3502 Banking, finance and investment
  • 1605 Policy and Administration
  • 1402 Applied Economics
 

Citation

APA
Chicago
ICMJE
MLA
NLM
Fullenkamp, C., & Rochon, C. (2017). Reconsidering bank capital regulation: a new combination of rules, regulators, and market discipline. Journal of Economic Policy Reform, 20(4), 343–359. https://doi.org/10.1080/17487870.2016.1181550
Fullenkamp, C., and C. Rochon. “Reconsidering bank capital regulation: a new combination of rules, regulators, and market discipline.” Journal of Economic Policy Reform 20, no. 4 (October 2, 2017): 343–59. https://doi.org/10.1080/17487870.2016.1181550.
Fullenkamp C, Rochon C. Reconsidering bank capital regulation: a new combination of rules, regulators, and market discipline. Journal of Economic Policy Reform. 2017 Oct 2;20(4):343–59.
Fullenkamp, C., and C. Rochon. “Reconsidering bank capital regulation: a new combination of rules, regulators, and market discipline.” Journal of Economic Policy Reform, vol. 20, no. 4, Oct. 2017, pp. 343–59. Scopus, doi:10.1080/17487870.2016.1181550.
Fullenkamp C, Rochon C. Reconsidering bank capital regulation: a new combination of rules, regulators, and market discipline. Journal of Economic Policy Reform. 2017 Oct 2;20(4):343–359.

Published In

Journal of Economic Policy Reform

DOI

EISSN

1748-7889

ISSN

1748-7870

Publication Date

October 2, 2017

Volume

20

Issue

4

Start / End Page

343 / 359

Related Subject Headings

  • 4407 Policy and administration
  • 3801 Applied economics
  • 3502 Banking, finance and investment
  • 1605 Policy and Administration
  • 1402 Applied Economics