Safer, but not safe enough
The great divide between official analyses and economists’ views of optimal bank equity capital is not as wide as appears at first sight if the economics of risk is properly addressed. Adapting the BoE’s analysis to take account of abnormal risk conditions, a less benign view of the effectiveness of...
| Huvudupphovsman: | |
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| Materialtyp: | Journal article |
| Språk: | English |
| Publicerad: |
MDPI
2019
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| _version_ | 1826274921478619136 |
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| author | Vickers, J |
| author_facet | Vickers, J |
| author_sort | Vickers, J |
| collection | OXFORD |
| description | The great divide between official analyses and economists’ views of optimal bank equity capital is not as wide as appears at first sight if the economics of risk is properly addressed. Adapting the BoE’s analysis to take account of abnormal risk conditions, a less benign view of the effectiveness of resolution regimes in systemic crisis, an international rather than domestic perspective, and a consistent approach to risk, takes one a good distance towards the economists’ view. The economic rationale for capital levels in the region of Basel III is left looking thin. It looks thinner still when, as now, price-to-book ratios are calling regulatory capital measures into question for some important banks. |
| first_indexed | 2024-03-06T22:50:50Z |
| format | Journal article |
| id | oxford-uuid:5eb7c3de-d577-4100-9c86-1c031e52173f |
| institution | University of Oxford |
| language | English |
| last_indexed | 2024-03-06T22:50:50Z |
| publishDate | 2019 |
| publisher | MDPI |
| record_format | dspace |
| spelling | oxford-uuid:5eb7c3de-d577-4100-9c86-1c031e52173f2022-03-26T17:42:25ZSafer, but not safe enoughJournal articlehttp://purl.org/coar/resource_type/c_dcae04bcuuid:5eb7c3de-d577-4100-9c86-1c031e52173fEnglishSymplectic Elements at OxfordMDPI2019Vickers, JThe great divide between official analyses and economists’ views of optimal bank equity capital is not as wide as appears at first sight if the economics of risk is properly addressed. Adapting the BoE’s analysis to take account of abnormal risk conditions, a less benign view of the effectiveness of resolution regimes in systemic crisis, an international rather than domestic perspective, and a consistent approach to risk, takes one a good distance towards the economists’ view. The economic rationale for capital levels in the region of Basel III is left looking thin. It looks thinner still when, as now, price-to-book ratios are calling regulatory capital measures into question for some important banks. |
| spellingShingle | Vickers, J Safer, but not safe enough |
| title | Safer, but not safe enough |
| title_full | Safer, but not safe enough |
| title_fullStr | Safer, but not safe enough |
| title_full_unstemmed | Safer, but not safe enough |
| title_short | Safer, but not safe enough |
| title_sort | safer but not safe enough |
| work_keys_str_mv | AT vickersj saferbutnotsafeenough |