00000nam 2200000za 4500 9.833268 CaOODSP 20221107150202 cr ||||||||||| 170302s2017 oncd ob f000 0 eng d CaOODSP eng eng fre n-cn--- FB3-5/2017-6E-PDF Moyen, Stéphane. Optimal capital regulation [electronic resource] / by Stéphane Moyen and Josef Schroth. [Ottawa] : Bank of Canada, 2017. ii, 38 p. : charts Bank of Canada staff working paper, 1701-9397 ; 2017-6 "February 2017." Includes bibliographical references. “We study constrained-efficient bank capital regulation in a model with market-imposed equity requirements. Banks hold equity buffers to insure against sudden loss of access to funding. However, in the model, banks choose to only partially self-insure because equity is privately costly. As a result, equity requirements are occasionally binding. Constrained-efficient regulation requires banks to build up additional equity buffers and compensates them for the cost of equity with a permanent increase in lending margins. When buffers are depleted, regulation relaxes the market-imposed equity requirements by raising bank future prospects through temporarily elevated lending margins"--Abstract, p. ii. Includes abstract in French. gccst Banks gccst Capital gccst Regulation Schroth, Josef. Bank of Canada. Staff working paper (Bank of Canada) 1701-9397 ; 2017-6 (CaOODSP)9.806221 PDF 505 KB https://publications.gc.ca/collections/collection_2017/banque-bank-canada/FB3-5-2017-6-eng.pdf