Optimal capital adequacy ratios for banks

In this paper, we analyse the appropriate capital adequacy ratio for banks from a socio-economic perspective. More equity capital in banks can contribute to financial stability by reducing the risk of costly banking crises, but lending may become more expensive if banks are required finance their as...

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Bibliographic Details
Main Authors: Henrik Andersen, Ragnar Enger Juelsrud
Format: Article
Language:English
Published: Elsevier 2024-06-01
Series:Latin American Journal of Central Banking
Subjects:
Online Access:http://www.sciencedirect.com/science/article/pii/S2666143823000285