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008230928t20232023oncd    ob   f000 0 eng d
040 |aCaOODSP|beng|erda|cCaOODSP
0410 |aeng|beng|bfre
0861 |aFB3-5/2023-49E-PDF
1001 |aSchroth, Josef, |eauthor.
24510|aShould banks be worried about dividend restrictions? / |cby Josef Schroth.
264 1|a[Ottawa] : |bBank of Canada = Banque du Canada, |c2023.
264 4|c©2023
300 |a1 online resource (24 pages) : |bgraphs.
336 |atext|btxt|2rdacontent
337 |acomputer|bc|2rdamedia
338 |aonline resource|bcr|2rdacarrier
4901 |aStaff working paper = |aDocument de travail du personnel, |x1701-9397 ; |v2023-49
500 |a"September 27, 2023."
500 |aCover title.
504 |aIncludes bibliographical references (pages 21-23).
5203 |a"In the model in this paper, banks are rationally forward-looking and thus ignore short-lived reductions in capital requirements. During a financial crisis, a regulator would want to first impose drastic dividend restrictions to force banks to rebuild capital, but also would want to keep capital requirements low for a sufficiently long time afterwards. However, such a policy is not time-consistent. Once banks are sufficiently re-capitalized, the regulator would be tempted to immediately raise capital requirements all the way to pre-crisis levels. Optimal time-consistent capital regulation requires that bank capital is rebuilt gradually during financial crises. In particular, banks must be able to pay dividends even when bank equity is still significantly below pre-crisis levels"--Abstract, page 2.
546 |aIncludes abstracts in English and French.
650 0|aDividend reinvestment.
650 0|aBusiness cycles|xEconometric models.
650 0|aFinancial risk management.
650 6|aDividendes|xRéinvestissement.
650 6|aCycles économiques|xModèles économétriques.
650 6|aFinances|xGestion du risque.
7102 |aBank of Canada, |eissuing body.
830#0|aStaff working paper (Bank of Canada)|x1701-9397 ; |v2023-49.|w(CaOODSP)9.806221
85640|qPDF|s405 KB|uhttps://publications.gc.ca/collections/collection_2023/banque-bank-canada/FB3-5-2023-49-eng.pdf