International Prudential Regulation, Regulatory Risk and Cost of Bank Capital
We define regulatory risk as regulation that leads to an increase in the cost of capital for a regulated firm. In a general equilibrium setting, scholars have shown that uniform increases in capital requirements lead to an increase in the cost of capital. We extend their model to show that when regu...
| Main Author: | |
|---|---|
| Format: | Article |
| Language: | English |
| Published: |
Universiti Utara Malaysia
2007
|
| Subjects: | |
| Online Access: | https://repo.uum.edu.my/id/eprint/25098/1/IJBF%205%201%202007%2027%2058.pdf |