Basel II and the Value of Bank Differentiation
AbstractThis paper analyzes optimal bank capital requirements when regulation can be differentiated according to banks’ heterogeneous risk-assessment capabilities. The new Basel II Accord provides the opportunity to do by introducing distinct regulatory systems for banks authorized to apply internal ratings and externally rated banks.
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Bibliographic InfoPaper provided by HEC Paris in its series Les Cahiers de Recherche with number 879.
Length: 41 pages
Date of creation: 01 Oct 2007
Date of revision:
bank capital regulation; capital adequacy; bank competition; risk-taking; Basel Accord; internal ratings;
Find related papers by JEL classification:
- H41 - Public Economics - - Publicly Provided Goods - - - Public Goods
- K13 - Law and Economics - - Basic Areas of Law - - - Tort Law and Product Liability; Forensic Economics
This paper has been announced in the following NEP Reports:
- NEP-ALL-2008-01-19 (All new papers)
- NEP-BAN-2008-01-19 (Banking)
- NEP-FMK-2008-01-19 (Financial Markets)
- NEP-LAW-2008-01-19 (Law & Economics)
- NEP-REG-2008-01-19 (Regulation)
- NEP-RMG-2008-01-19 (Risk Management)
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