Fixing What Ain’t Broken: The Real and Hidden Costs of Excessive Bank Capital Regulation
Introduction Large banks have seen both the absolute and relative amount of capital they maintain increase steadily over the past […]
BankNotes Blog
BankNotes Blog
BankNotes Blog
A Holistic Look at Large Bank Capital Shows It At the High End of the Optimal Range
Introduction Recently, the Federal Reserve’s Vice Chair for Supervision gave a speech in which he stated that “current U.S. [capital]
BankNotes Blog
Don’t Paint the House Before Finishing the Roof: Basel III Finalization and the Large Bank Capital Regime
Introduction Recently, the Federal Reserve indicated that banking regulators will soon release a proposal to implement a further revision to
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Raising the Cost of Credit at the Wrong Time: The Unnecessary and Counterproductive Rise in the GSIB Surcharge
Introduction Since the onset of the pandemic in the U.S. in 2020, U.S.-based Global Systemically Important Banks (GSIBs) have supported
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Bank Capital, Borrowing Costs, and Lending: Demand Curves Still Slope Downwards
Introduction What happens to the cost and quantity of bank lending when bank capital requirements rise? Among economists, the answer
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Large Bank Support for the International Competitiveness of U.S. Companies
Introduction Large companies in the U.S. that compete all over the globe – companies that run that gamut from the
BankNotes Blog
Past Due Notice: Addressing Leverage Capital for Large Banks to Restore Treasury Market Functioning
Introduction Since the onset of the pandemic, the U.S. government has increased the level of outstanding Treasury debt by roughly
BankNotes Blog
The Unlevel Playing Field Gets Even Steeper: Changes to the GSIB Surcharge for European Banks and Implications for the United States
Introduction Recently, the Basel Committee on Banking Supervision (BCBS) issued a press release indicating that it had made substantive technical