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