IDEAS home Printed from https://ideas.repec.org/a/bla/jemstr/v35y2026i2p233-249.html

Bank Capital and Misconduct Incentives

Author

Listed:
  • Jacob Seifert

Abstract

This paper studies large banks' incentives to engage in misconduct by abusing their dominant position in the market for loans and by mis‐selling an add‐on financial product to depositors. We draw new connections between stability‐focused prudential regulation and misconduct by studying the impact of higher capital requirements on misconduct incentives. Higher capital requirements are more likely to increase misconduct incentives when incumbents enjoy a significant equity funding cost advantage over challenger banks. These results highlight the importance of regulatory coordination in the areas of bank conduct and financial stability.

Suggested Citation

  • Jacob Seifert, 2026. "Bank Capital and Misconduct Incentives," Journal of Economics & Management Strategy, Wiley Blackwell, vol. 35(2), pages 233-249, April.
    • Handle: RePEc:bla:jemstr:v:35:y:2026:i:2:p:233-249
    DOI: 10.1111/jems.12644
    as

    Download full text from publisher

    File URL: https://doi.org/10.1111/jems.12644
    Download Restriction: no
    File URL: https://libkey.io/10.1111/jems.12644?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:bla:jemstr:v:35:y:2026:i:2:p:233-249. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Wiley Content Delivery (email available below). General contact details of provider: http://www.kellogg.northwestern.edu/research/journals/JEMS/ .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.